EFFECT OF CEO PAY AND CEO POWER ON RISK-TAKING OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

It has been argued that increasing demand for high compensation by executives and powers in the hand of executives have contributed to increased risk-taking in the banking industry. The study aims to examine the effect of CEO Pay, CEO Ownership Power, and Expert Power on risk-taking of listed deposit money banks in Nigeria. A sample of 12 deposit money banks for the period 2009 – 2019 was studied and analysed using panel regression. The study found that CEO pay and CEO Expert power have no significant effect on risk-taking of listed deposit money banks in Nigeria. In contrast, CEO Ownership power was found to influence risk-taking significantly. The study recommends strengthening the influence of independent directors on the board to mitigate the influence of powerful CEOs.

Keywords

• Executive Compensation
• powerful CEOs
• compensation
• CEO power
• risk-taking