IDEAS home Printed from https://ideas.repec.org/a/taf/jecprf/v22y2019i3p208-225.html
   My bibliography  Save this article

European banks’ executive remuneration under the new European Union regulation

Author

Listed:
  • Pablo de Andrés
  • Rodrigo Reig
  • Eleuterio Vallelado

Abstract

We review how the new European regulation of bank executive compensation could affect the future of banking in Europe. Although there is no conclusive empirical evidence on the relation between bank executive remuneration and the financial crisis, authorities have intensively regulated the compensation of bank managers to eliminate risk-taking incentives in the financial industry. However, the new regulation could have unintended consequences of creating an adverse selection problem at European banks, reducing the number of best-performing managers available for European banks, and motivating an excessive increase in fixed remuneration over total remuneration, altering the way incentive systems work.

Suggested Citation

  • Pablo de Andrés & Rodrigo Reig & Eleuterio Vallelado, 2019. "European banks’ executive remuneration under the new European Union regulation," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 22(3), pages 208-225, July.
    • Handle: RePEc:taf:jecprf:v:22:y:2019:i:3:p:208-225
    DOI: 10.1080/17487870.2018.1424630
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/17487870.2018.1424630
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/17487870.2018.1424630?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Luis Porcuna Enguix, 2021. "The New EU Remuneration Policy as Good but Not Desired Corporate Governance Mechanism and the Role of CSR Disclosing," Sustainability, MDPI, vol. 13(10), pages 1-35, May.
    2. Catarina Proença & Mário Augusto & José Murteira, 2023. "Political connections and remuneration of bank boards’ members: moderating effect of gender diversity," Review of Managerial Science, Springer, vol. 17(8), pages 2727-2767, November.

    More about this item

    Statistics

    Access and download statistics

    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:taf:jecprf:v:22:y:2019:i:3:p:208-225. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GPRE20 .

    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.