Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD
📄 Download Paper

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

Appah, E., & Okoro, J. (2020). Executive Compensation and Corporate Performance in Nigeria. Journal of Finance and Accounting, 8(2), 50-65. Capuano, A. (2022). Remuneration Policy and Corporate Governance. Journal of Management Studies, 45(3), 301-320. Jensen, M. C., & Murphy, K. J. (1990). Performance Pay and Top-Management Incentives. Journal of Political Economy, 98(2), 225-264. Mohammed, B. (2023). Executive Compensation and ESG Performance. International Review of Economics, 10(26), 89-122. Okpo, S. A., Edet, K. E., & Akpan, D. C. (2023). Executive Compensation and Financial Performance of Banks in Nigeria. Journal of Banking and Finance, 15(4), 112-130. Omoregie, O., & Kelikume, I. (2017). Executive Compensation and Banking Stability in Nigeria. African Journal of Economic Policy, 24(1), 55-72. Usman, A. & Yahaya, a. (2024). Executive compensation and ESG performance. International Review of Economics, 10 (26), 89-122. Yamina, A. and Mohamed, B (2017). The impact of Firm's Performance on Executive Compensation in France, Mediterranean Journal of Science, 8 (2). Yusuf, R. A. (2025). Externally appointed chief executive officer's compensation, risk-taking behaviour, and the moderating role of CEO's social capital: UK evidence. International Journal of Accounting and Information Management. Zik-Rullahi, A. A. & Zik-Rullahi, H. Y. (2024). Does human capital influence the relationship between highest-paid director compensation and financial performance in Nigerian banks? International Journal of Research and Innovation in Social Sciences, VIII (XI).

More Articles from IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH

Effect of Monetary Policy on Profitability of Deposit Money Banks in Nigeria

Author: Stephanie Nguhemen Gbande, Mike T. Soomiyol, Timothy Tyona, Gaius Msendoo Asombo

Examining the Impact of Corporate Social Responsibility on Financial Performance: Evidence from Small and Medium-Sized Enterprises in Hanoi

Author: Nguyen Mai Phuong

Cognitive Diversity and Performance of Deposit Money Banks in Nigeria

Author: 1Nwangwu, Okwudiri Iheanyi, 2 Pepple, Grace Jamie PhD

Banking Innovations and Industrial Sector Performance in Nigeria: Evidence from ARDL Model

Author: Peter Ngbede Ajam, Abiodun Edward Adelegan, Benson Emmanuel

Environmental Sustainability and Entrepreneurial Performance in Nigeria: A Case Study of Enugu State

Author: i, Azolike Nkiru Nkechi, ii, Okwor Emmanuel Ejimnkonye, iii, Eneaniofu Daniel Mmaduakonam