Does board of directors’ remuneration affect banks’ performance? A broad empirical analysis in the US banking system

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This paper explores the relationship between directors’ remuneration and banks’ performance using extensive panel data for the period 2002–2021, to be able to make comparisons between the COVID-19 period and the pre-COVID-19 period and also make a comparison with the Great Financial Crisis born in the US in 2007. The scientific analysis methodology adopted is based on panel data analysis and the content analysis approach. The first results of the data analysis allow highlighting the existence of a significant connection between the remuneration policies adopted by the US banks with respect to the results obtained in terms of profitability. These findings can help banks identify best practices for bank management during the financial international crisis, as well as provide useful insights to different categories of stakeholders, including bank regulators and supervisors.

Keywords: Bank Performance, Board of Directors, Corporate Governance, COVID-19 Pandemic, Director Remuneration

JEL Classification: G01, G21, G28, G34, M52

Received: 19.04.2022
Accepted: 25.04.2022

How to cite: Capuano, P. (2022). Does board of directors’ remuneration affect banks’ performance? A broad empirical analysis in the US banking system. In G. M. Mantovani, A. Kostyuk, & D. Govorun (Eds.), Corporate governance: Theory and practice (pp. 34–39). https://doi.org/10.22495/cgtapp5