How post-crisis regulation has affected bank CEO compensation

Cerasi, Vittoria; Deininger, Sebastian; Gambacorta, Leonardo; Oliviero, Tommaso

doi:10.1016/j.jimonfin.2020.102153

Cited by 24 publications

(6 citation statements)

References 32 publications

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“…These simple statistics are consistent with Cerasi et al (2020) who argue that the structure of remuneration of CEOs has changed and become in line with the Principles for Sound Compensation Practices (FSF, 2009) that apply to banks through CRD IV. However, they also find that the remuneration of the CEOs in banks that were not subject to the regulatory change has also changed during the same period.…”

Section: Structure Of Remunerationsupporting

confidence: 83%

Bankers' remuneration reforms and new challenges

Zalewska

2022

Corporate Governance

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Research Question/Issue The desire to structure bankers' remuneration in a way that it is risk sensitive and aligned with the long‐term incentives of their institutions was at the center of the post Global Financial Crisis (GFC) regulatory reforms. A decade later, it is unclear whether the reforms achieved what they were intended for and whether they have resulted in some unintended consequences. The issue of unintended consequences is particularly important given that the banking sector needs to embrace technological innovation (Fintech) and the sustainable banking agenda. Research Findings/Insights We are still far from understanding the real costs and benefits of the remuneration reforms because it is difficult to isolate the impact of remuneration restrictions from the impact other regulations and policies had on restricting risk taking, banking structures and bonus culture. However, even if it is questionable whether the remuneration reforms contributed significantly towards improving the stability of the banking sector, they seem unsuitable for promoting Fintech and the sustainable banking agenda. Theoretical/Academic Implications The post‐GFC remuneration reforms may not sufficiently align bankers with stakeholders' interests which is essential to promote adoption of Fintech and sustainable banking agenda. Practitioner/Policy Implications The lack of in‐depth understanding of the effects of the remuneration reforms creates a barrier to understand the impact of the reforms on how banks innovate to adopt Fintech and the sustainable banking agenda. If the existing remuneration regulation limits the openness to innovation and strategic change, then the regulation needs to be revisited and modified.

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Section: Structure Of Remunerationsupporting

confidence: 83%

Bankers' remuneration reforms and new challenges

Zalewska

2022

Corporate Governance

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“…Such a finding proves to corroborate well that achieved by Bebchuk et al (2011), suggesting that the extent of the agency dispute appears to get rather intensified in presence of a strong CEO dominance. This is consistent with previous findings of Cerasi et al (2020) which indicate that greater compensation is highly advantageous in mitigating risk in the banking sector. These results proof that CEO dominance tends to increase agency costs and has an impact risk-taking.…”

Section: Multivariate Analysessupporting

confidence: 93%

To What Extent does CEO Behavior Enhance Risk-Taking? A Banking Sector Related Evidence

Jilani¹,

Chouaibi²

2021

Sci. Ann. Econ. Bus.

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“…According to Kotidis and Schreft (2022), the practice of blockchain development and integration is becoming increasingly popular and can be applied to public administration, key government agencies, and the financial sector, which will be reliably protected from external influence. Cerasi et al (2020) believes that the practice of implementation will constantly evolve and cover new sectors of the financial environment. Sumets et al (2022) argues that an essential factor in financial institutions' cybersecurity is to conduct specialized training for the staff on digital literacy and work with information technology.…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of the Impact of Cybersecurity on The Stability of Financial Institutions

Polishchuk,

Fedirko,

Grytsyshen

et al. 2024

Intl. J. Rel.

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The issue of the impact of cybersecurity is a top priority for the functioning of a financial institution. Therefore, its provision becomes a priority in organizing the further activities of the institution itself. The article aims to analyze the current trends in ensuring the cybersecurity of financial institutions and its role in their functioning. The paper describes the theoretical foundations of the cyber protection concept. The authors also outline the specifics of cybersecurity and the leading technological solutions for achieving these goals. Special attention is paid to modern, innovative solutions to maintain the stability of financial institutions and the possibility of further development. An important area of research is the disclosure of the practical experience of information corporations in providing technical solutions to ensure the security of financial transactions and support the global financial system. The study presents the experience of Ukrainian financial institutions that use variable digital defense strategies and maintain their functionality based on an effective cybersecurity system in the context of a global military conflict. The results of the study include a detailed profile of effective practical solutions to ensure the stability of financial institutions based on the implementation of blockchain technologies. The authors pay attention to the issue of modern software, hardware, and management solutions to improve the quality of cybersecurity in the context of growing cyberattacks and digital threats to the stability of financial institutions. The research findings may be helpful for further analytical studies on the effectiveness of cybersecurity and the stability of financial institutions.

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How post-crisis regulation has affected bank CEO compensation

Cited by 24 publications

References 32 publications

Bankers' remuneration reforms and new challenges

Bankers' remuneration reforms and new challenges

To What Extent does CEO Behavior Enhance Risk-Taking? A Banking Sector Related Evidence

Analysis of the Impact of Cybersecurity on The Stability of Financial Institutions

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