Board of Directors and Remuneration in Indonesian Banking

DOI: 10.5176/2251-1997_AF14.62

Authors: Hikmah Endraswati, Prof. Djoko Suhardjanto M. Com, Ph. D, and Dr. Krismiaji

Abstract:

The purpose of this research is to examine the effect of commissioner and remuneration committee characteristics on the remuneration in the banking sector of Indonesia. Sample in this research are 19 banks in the period of 2006-2010. We find that proportion of gender, number of meeting and proportion of independent in remuneration committee negatively affect remuneration whereas size of board and frequency of attendance in meeting positively affect remuneration. Firm size and performance as control variables positively affects the remuneration.

Keywords: remuneration, remuneration committee characteristics, commissioner characteristics, Indonesia banking