Executive Compensation Packages and Customer Acquisition of Selected Deposit Money Banks in Lagos State Nigeria

Abstract

Executive compensation is a major strategy being employed by deposit money banks to achieve steady growth in their customer acquisition efforts. The banks face series of challenges including inability to achieve consistent service excellence which had negatively impacted on new customer acquisition. The study examined the effect of executive compensation package on customer acquisition of selected deposit money banks in Lagos State, Nigeria. The study employed cross sectional survey research design where four hundred and twenty-nine copies of the research instruments were administered to purposively selected respondents who were senior and executive staff of the selected banks. The result of multiple regression analysis revealed that base salary (B = 0.217, p = 0.000) and recognition (B = 0.123, p = 0.012) have positive and significant effect on customer acquisition while supplementary benefits (B = 0.017, p = 0.568) and executive bonus (B = 0.044, p = 0.175) have positive, but insignificant effect on customer acquisition. The study concluded that executive compensation has positive effect on customer of selected deposit money banks in Lagos State, Nigeria. It was recommended that attractive compensation management should be instituted to ensure that executive staff are adequately remunerated to facilitate their performance with less distractions.