CEO Pay Determinants; An Empirical Panel Data Analysis in the Western European Banking Sector (1988–2002)

In this paper it will be attempted to estimate the effect of profitability, bank size as well as bank expansion on ceo remuneration in the Western European banking sector. The sample covers annually many banks of the countries Belgium, Denmark, France, Germany, Netherlands, Ireland and UK for the period (1988–2002). Data are kindly given by Bloomberg and are elaborated through the Eviews software package. The contribution of this paper is that a new method of estimation the remuneration of banking ceo is introduced based on Georgiou (2005), thus enabling researchers to relate ceo remuneration variable with other economic variables