Abstract
The association between CEO compensation and bank profitability has drawn substantial attention in recent years. The study analyzes the relationship between CEO compensation and bank performance in Bangladesh for 2010-2020. The variables used in the study are return on equity, CEOs salary, bonus, housing facilities, housing allowance, and foreign trips. The study uses a 2SLS estimator to remove the possible endogeneity and create an unbiased result. The results strongly suggest that the CEOs' compensation package is positively and significantly related to the bank performance. A higher compensation package motivates the executives to perform well and reduces the agency problem.
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