Facial attractiveness and CEO compensation : Evidence from the banking industry

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annif.suggestionswages|chief executive officers|banks (monetary institutions)|machine learning|labour market|wage level|universities|enterprises|incentives|performance-related pay|enen
annif.suggestions.linkshttp://www.yso.fi/onto/yso/p2008|http://www.yso.fi/onto/yso/p11394|http://www.yso.fi/onto/yso/p1099|http://www.yso.fi/onto/yso/p21846|http://www.yso.fi/onto/yso/p8831|http://www.yso.fi/onto/yso/p3481|http://www.yso.fi/onto/yso/p10895|http://www.yso.fi/onto/yso/p3128|http://www.yso.fi/onto/yso/p7458|http://www.yso.fi/onto/yso/p17470en
dc.contributor.authorAhmed, Shaker
dc.contributor.authorRanta, Mikko
dc.contributor.authorVähämaa, Emilia
dc.contributor.authorVähämaa, Sami
dc.contributor.departmentDigital Economy-
dc.contributor.facultyfi=Laskentatoimen ja rahoituksen yksikkö|en=School of Accounting and Finance|-
dc.contributor.orcidhttps://orcid.org/0000-0002-2330-7836-
dc.contributor.orcidhttps://orcid.org/0000-0002-9096-1635-
dc.contributor.orcidhttps://orcid.org/0000-0003-2957-4780-
dc.contributor.organizationfi=Vaasan yliopisto|en=University of Vaasa|
dc.date.accessioned2024-01-15T08:47:50Z
dc.date.accessioned2025-06-25T13:05:18Z
dc.date.available2024-01-15T08:47:50Z
dc.date.issued2023-01-27
dc.description.abstractThis paper examines the effect of facial attractiveness on the compensation of bank Chief Executive Officers (CEOs). Consistent with the so-called beauty premium hypothesis, we document that good looks pay off for bank CEOs. Specifically, by utilizing machine learning to assess the facial appearance of the CEOs of large U.S. banks, we find that CEO facial attractiveness is positively associated with the annual total compensation and the discretionary, performance-based components of compensation. The total compensation of above-average looking bank CEOs is about 24% higher than the compensation of CEOs with below-average looks after controlling for various CEO-specific and bank-specific attributes that are known to affect executive compensation. Furthermore, our results indicate that facial attractiveness is weakly positively related to the annual base salary while being unrelated to the pay-performance and pay-risk sensitivities of bank CEO compensation. Overall, our empirical findings provide strong evidence for the existence of a beauty premium in the executive labor market.-
dc.description.notification© 2022 The Author(s). Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).-
dc.description.reviewstatusfi=vertaisarvioitu|en=peerReviewed|-
dc.format.bitstreamtrue
dc.format.contentfi=kokoteksti|en=fulltext|-
dc.format.extent24-
dc.identifier.olddbid19765
dc.identifier.oldhandle10024/16762
dc.identifier.urihttps://osuva.uwasa.fi/handle/11111/1474
dc.identifier.urnURN:NBN:fi-fe202401152719-
dc.language.isoeng-
dc.publisherElsevier-
dc.relation.doi10.1016/j.jeconbus.2022.106095-
dc.relation.funderOP Group Research Foundation-
dc.relation.funderFinnish Savings Banks Research Foundation-
dc.relation.funderMarcus Wallenberg Foundation-
dc.relation.funderKAUTE Foundation-
dc.relation.funderFoundation for the Advancement of Finnish Securities Markets-
dc.relation.funderFoundation for Economic Education-
dc.relation.ispartofjournalJournal of Economics and Business-
dc.relation.issn1879-1735-
dc.relation.issn0148-6195-
dc.relation.urlhttps://doi.org/10.1016/j.jeconbus.2022.106095-
dc.relation.volume123-
dc.rightsCC BY 4.0-
dc.source.identifierWOS:000926851300001-
dc.source.identifierhttps://osuva.uwasa.fi/handle/10024/16762
dc.subjectFacial attractiveness-
dc.subjectCEO compensation-
dc.subjectBeauty premium-
dc.subjectBank CEOs-
dc.subject.disciplinefi=Laskentatoimi ja rahoitus|en=Accounting and Finance|-
dc.titleFacial attractiveness and CEO compensation : Evidence from the banking industry-
dc.type.okmfi=A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä|en=A1 Peer-reviewed original journal article|sv=A1 Originalartikel i en vetenskaplig tidskrift|-
dc.type.publicationarticle-
dc.type.versionpublishedVersion-

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