The Dodd-Frank Act of 2010 mandated a number of regulatory reforms including a requirement that large U.S. public companies provide their shareholders with the opportunity to cast a non-binding vote on executive compensation. The “say on pay” vote was designed to rein in excessive levels of...

In this paper we examine changes in the relationship between bank risk and the structure of bank CEO compensation following the enactment of the Dodd-Frank Act of 2010. Using a diff-in-diff methodology, we find significant differences between high and low pay-risk sensitivity banks....