H. Shelton Weeks

CEO ownership, corporate control, and bank performance

This study examines the relation between CEO ownership and bank performance. In contrast to Pi and Timme (1993), we find that, when economic measures of performance are used, the relation between ownership and the performance of commerical banks is nonlinear. Additionally, in contrast to previous studies, we find the question of whether or not the CEO also holds the title of chairman of the board has an insignificant impact on bank performance. We conclude that, in commercial banks, management entrenchment may offset the effects predicted by Jensen and Mecklings (1976) convergence-of-interest hypothesis.

The Salary Premium Required for Replacing Management Faculty: Evidence From a National Survey

One of the most important aspects of growing and improving business education is replacing departed faculty members. As the baby-boom generation approaches retirement, the supply of available replacement faculty members is diminishing. The result is a competitive market for replacement faculty that features increasing starting salary levels. In particular, faculty lines that have been occupied for extended time periods need to be marked to market salary levels because annual salary increases rarely keep pace with inflation in the labor market. The authors report the results of a national survey to determine the amount of salary premium required to bring vacated management faculty lines back up to competitive market levels. As business schools struggle to replace retiring and departing faculty, budgets have to account for these premium increases to succeed in an increasingly competitive market for faculty labor.