"Executive Pay and Performance: Evidence from the U.S. Banking Industry"
Journal of Financial Economics,
Volume: 39 | Issue: 1 | Pages: 105-30
Publication type: Journal article
This paper examines CEO pay in the banking industry and the effect of deregulating the market for corporate control. Using panel data on 147 banks over the 1980s, we find higher levels of pay in competitive corporate control markets, i.e., those in which interstate banking is permitted. We also find a stronger pay-performance relation in deregulated interstate banking markets. Finally, CEO turnover increases substantially after deregulation. These results provide evidence of a managerial talent market ? one which matches the level and structure of pay with the competitiveness of the banking environment.
Each author name for a Columbia Business School faculty member is linked to a faculty research page, which lists additional publications by that faculty member.
Each topic is linked to an index of publications on that topic.