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Compensation Packages of Executive Directors and Financial Performance of Deposit Money Banks in Nigeria

Edet, Kingsley Effiong, Okpo, Sunday Asukwo, Akpan, Dorathy Christopher

Abstract

This study was conducted to investigate the effect of executive compensation packages on the financial performance of deposit money banks in Nigeria. The executive compensation which was the independent variable was proxied by cash, bonus, stock option, perquisite of office and cash incentives compensation packages; while the financial performance which was the dependent variable was proxied by return on equity (ROE). The study adopted ex post facto research design as the data for the study were extracted from published annual reports and accounts of the selected banks for a period of ten (10) years covering 2014 to 2023. The results of analysis revealed cash compensation and bonus compensation have significant positive relationship with return on equity.

Keywords

Compensation packagesfinancial performancedeposit money banksreturn on equity

References

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