IDEAS home Printed from https://ideas.repec.org/a/ids/ijbpma/v18y2017i3p327-349.html
   My bibliography  Save this article

Determinants of CEO pay: empirical evidence from Nigerian quoted banks

Author

Listed:
  • Clement Olalekan Olaniyi
  • Olufemi Bodunde Obembe

Abstract

One of the most important internal corporate governance mechanisms is CEO pay. However, studies on corporate governance from Nigeria have largely ignored this important subject, and where it has been examined, the issue of dynamic endogeneity has been completely ignored thereby leading to lack of credible results explaining the determinants of CEO pay in Nigerian banking industry. This study therefore examined the determinants of CEO pay of quoted banks in Nigeria between 2005 and 2012, using a dynamic panel generalised method of moments (GMM). The results showed that previous CEOs' pay, bank size and CEOs' tenure exerted significant positive influence on CEOs' pay while bank performance, board composition and Tobin's Q had significant but negative effect on CEOs' pay. Board size, CEOs' age and leverage were found to exert no significant impact on CEOs' pay in Nigerian banks. The study therefore concludes that there is a conflict of interests between executives and shareholders, which the CEO's pay has aggravated. Hence, there is a need for the regulatory authorities to formulate appropriate and workable policies that will guide executive remuneration in the Nigerian banking industry.

Suggested Citation

  • Clement Olalekan Olaniyi & Olufemi Bodunde Obembe, 2017. "Determinants of CEO pay: empirical evidence from Nigerian quoted banks," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 18(3), pages 327-349.
    • Handle: RePEc:ids:ijbpma:v:18:y:2017:i:3:p:327-349
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=84856
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rachita Gulati & Madhur Bhatia & Geeta Duppati, 2022. "Do Boards Govern Executive Remuneration in Indian Banks? An Econometric Exploration," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 20(1), pages 211-255, March.
    2. Clement Olalekan Olaniyi & Ademola Obafemi Young & Xuan Vinh Vo & Mamdouh Abdulaziz Saleh Al‐Faryan, 2022. "Do institutional framework and its threshold matter in the sensitivity of CEO pay to firm performance? Fresh insights from an emerging market economy," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3386-3403, December.
    3. Madhur Bhatia & Rachita Gulati, 2023. "Does ‘inter-bank’ horizontal pay disparity influence performance? Evidence from emerging economy," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 20(4), pages 327-343, December.
    4. Clement Olalekan Olaniyi, 2022. "On the transmission mechanisms in the finance–growth nexus in Southern African countries: Does institution matter?," Economic Change and Restructuring, Springer, vol. 55(1), pages 153-191, February.
    5. Clement Olalekan Olaniyi & Olufemi Bodunde Obembe & Emmanuel Oluwole Oni, 2017. "Analysis of the Nexus between CEO Pay and Performance of Non-Financial Listed Firms in Nigeria," African Development Review, African Development Bank, vol. 29(3), pages 429-445, September.
    6. Clement Olalekan Olaniyi & Olaolu Richard Olayeni, 2020. "A new perspective into the relationship between CEO pay and firm performance: evidence from Nigeria’s listed firms," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(2), pages 250-277, December.
    7. Saleh F. A. Khatib & Dewi Fariha Abdullah & Ahmed A. Elamer & Raed Abueid, 2021. "Nudging toward diversity in the boardroom: A systematic literature review of board diversity of financial institutions," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 985-1002, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijbpma:v:18:y:2017:i:3:p:327-349. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=3 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.