Answers are grounded in this paper and cite their sources.
This study investigates how the relationship between bank performance and executive compensation is affected by the degree of an executive’s managerial discretion. Managerial discretion is captured by two industry-specific attributes: a bank’s strategic domain, and its regulatory environment. Executive compensation is found to be more related to bank performance in a context of high managerial discretion than in a context of low managerial discretion.
No takes yet. Share an insight, caveat, or question.
Magnan et al. (1997) studied this question.
Synapse has enriched 10 related papers. Consider them for comparative context: