CEO Compensation and Bank Mergers

  title={CEO Compensation and Bank Mergers},
  author={R. Bliss and R. Rosen},
  journal={Journal of Financial Economics},
  • R. Bliss, R. Rosen
  • Published 2001
  • Business
  • Journal of Financial Economics
  • Recent bank mergers generally did not improve relative operating performance or produce positive abnormal returns to acquiring bank shareholders. We examine the relationship between mergers and CEO compensation during 1986-1995, a period marked by overcapacity and frequent mergers. We find that mergers have a net positive effect on compensation, mainly via the effect of size on compensation. Compensation generally increases even if mergers cause the acquiring bank's stock price to decline, as… CONTINUE READING
    43 Citations