Directors’ compensation. Sectorial and variable income analysis

Directors’ compensation. Sectorial and variable income analysis

Abstract:

Directors’ compensation is a particularly relevant subject today. This paper studies the difference between Directors’ remuneration in the banks and in the equivalent positions in other sectors, as well as an analysis of the relationship between the ROE of the companies with the variable income of their Directors. This paper, using Spanish listed enterprises as a sample, clearly concludes that bank Directors’ compensation is superior in all aspects except for allowances and that the ROEs are not related to the variable income, being this due more to other variables such as size or if it is a bank or not.

Keywords: compensation, variable income, directors, ROE, banks