ABSTRACT
This study examined the impact of director's
remuneration on commercial banks’ performance in Nigeria. The study used
stratified and purposive sampling technique to select ten out of the population
of twenty one banks. The ordinary least squares method of multiple regression
was used to analyze the data for this study which were obtained from the annual
reports of the selected banks covering a period of fifteen years from 2000-2014.
Profit after tax and return on equity were used as dependent variables for the
various hypotheses stated in this study and the independent variables comprised
of executive director’s remuneration, non executive director’s remuneration,
salaries and wages, and pension costs. The findings of the research indicated
that executive directors’ remuneration had a positive and significant impact on
commercial banks’ performance in Nigeria, while non executive director’s
remuneration had no impacts on banks’ performance, salaries and wages and
pension costs both had positive and significant impact on banks’ profit after
tax. The study therefore recommended, among others that performance based pay
system should be implemented in the banks, so as to ensure that hard work and
commitment are encouraged among bank directors. This implies that directors’
remuneration should be closely tied to the level of contribution towards
overall performance of the bank. Also corporate shareholders should engage in
director tailored wages and reward system that is not just salvation wages for
the directors but should be relatively sufficient, to attract and maintain
individuals with top management skills in the Nigerian banking system.
CHUKWUDI, C (2023). Impact Of Directors’ Remuneration On Commercial Banks’ Performance In Nigeria (2000-2014):- Okosa, Chukwudi C.. Mouau.afribary.org: Retrieved Oct 09, 2024, from https://repository.mouau.edu.ng/work/view/impact-of-directors-remuneration-on-commercial-banks-performance-in-nigeria-2000-2014-okosa-chukwudi-c-7-2
C, CHUKWUDI. "Impact Of Directors’ Remuneration On Commercial Banks’ Performance In Nigeria (2000-2014):- Okosa, Chukwudi C." Mouau.afribary.org. Mouau.afribary.org, 19 Dec. 2023, https://repository.mouau.edu.ng/work/view/impact-of-directors-remuneration-on-commercial-banks-performance-in-nigeria-2000-2014-okosa-chukwudi-c-7-2. Accessed 09 Oct. 2024.
C, CHUKWUDI. "Impact Of Directors’ Remuneration On Commercial Banks’ Performance In Nigeria (2000-2014):- Okosa, Chukwudi C.". Mouau.afribary.org, Mouau.afribary.org, 19 Dec. 2023. Web. 09 Oct. 2024. < https://repository.mouau.edu.ng/work/view/impact-of-directors-remuneration-on-commercial-banks-performance-in-nigeria-2000-2014-okosa-chukwudi-c-7-2 >.
C, CHUKWUDI. "Impact Of Directors’ Remuneration On Commercial Banks’ Performance In Nigeria (2000-2014):- Okosa, Chukwudi C." Mouau.afribary.org (2023). Accessed 09 Oct. 2024. https://repository.mouau.edu.ng/work/view/impact-of-directors-remuneration-on-commercial-banks-performance-in-nigeria-2000-2014-okosa-chukwudi-c-7-2