Comparative Analysis of Executive Remuneration Disclosure in the Banking Industry: Developing vs Developed Countries

Abstract

As global scrutiny intensifies around executive pay in the banking sector, transparency in remuneration disclosure has become a pressing concern, especially across diverse economic landscapes. This qualitative study investigates how banks in both developed (e.g., Switzerland, Singapore) and developing countries (e.g., India, South Africa) report executive remuneration by using the Global Reporting Initiative (GRI) requirements to assess twelve purposively selected annual reports (Ehnert et al., 2016). The findings of this study reveal that most banks disclose key components such as fixed and variable pay, performance linkage, ESG alignment, and remuneration philosophy. Critical elements like shareholder voting outcomes and compensation balance remain underreported, limiting cross-country comparability. Notably, developed countries demonstrate stronger transparency mechanisms through the use of external consultants and specialised remuneration committees. To address social equity (people), environmental responsibility (planet), and financial accountability (profit) using annual reports, the study highlights the need for global reporting standards that reflect sustainable governance by concluding with implications for practical and future research to advance inclusive and transparent remuneration practices and research in the banking sector.