The Effect of Profitability, Credit Quality and Covid-19 Pandemic on the Amount of Executive Compensation on Banking Companies in Indonesia

Abstract

Disclosure of executive compensation has not been widely carried out in Indonesia. There are many factors that affect executive compensation. This research analyzes profitability, credit quality, and the Covid-19 pandemic on executive compensation in banking companies in Indonesia. This study is a quantitative study using targeted sampling. The data collection method for this study is to document the Annual Report 2018-2020 by downloading it from the website www.idx. co.id and each company's website. The results of the study, in part, indicate that projected profitability as return on assets (ROA) has a significant impact on executive compensation. Credit quality as a proxy for Non-Performing Loans (NPL) has an insignificant negative effect on executive compensation. Meanwhile, Covid-19 has no significant effect on executive compensation at Indonesian banking companies.