ABSTRACT
This study investigates the relationship between executive compensation and risk for banks in Indonesia over the period 2010–2013, with 374 observations. The risk of banks was measured by non-performing loans that implicated loan risk. Non-performing loans were the dependent variable and executive compensation was the independent variable. Firm size, firm age, and capital asset ratio were the control variables. The result of the study indicated that executive compensation, firm age, and capital asset ratio had a negative effect on risk and firm size had a positive effect on risk.
