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Impact of Executive Compensation on the Comprehensive Performance of Commercial Banks

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DOI: 10.38007/Proceedings.0000499

Author(s)

Jingui Zhang,Jiayan Wu

Corresponding Author

Jiayan Wu

Abstract

In recent years, the growth rate of the banking industry's earnings has declined, and the social real economy is not strong. With this background, the managerial ability of bank managers was been questioned by people. The relationship between executive compensation and bank performance start becoming a social concern. Studying the performance of executive compensation on bank performance is helpful to judge whether Executive can help bank stakeholders realize their demands. This paper conducted a panel model empirical study on the report data of 16 listed commercial banks in China from 2014 to 2018, and found that executive compensation is positively correlated with the comprehensive performance of banks. Therefore, effective compensation incentive policies are conducive to executives 'selection of long-term strategies that can promote banks' sustainable development. Meanwhile, qualified executives will help the bank fulfill its social mission.

Keywords

Social responsibility; Performance; Executive Compensation