Management Compensation and the World Economic Crisis: Evidence from Bosnia and Herzegovina


  • Adisa Delić Faculty of Economics, University of Tuzla
  • Amra Nuhanović Faculty of Economics, University of Tuzla .


world economic crisis, manager compensation, regulation of compensation, Bosnia and Herzegovina (BH)


Much has been written about the (still present) world economic crisis in the past few years, and in those scientific discussions the main factors – causes of crisis have been often analyzed. All those (up to now) analyzed factors make the crisis long-lasting, harder, uncertain with hardly predictable implications. On the other hand, understanding the cause and preventing the consequences of crises are an important precondition of economic and social development of any country.

With regard to this, the main aim of research by the authors of this paperwork has been based on the attempt to explain the view according to which, the greed of Wall Street bankers caused by excessive management compensation has also been, inter alia, one of the relevant factors causing and deepening the 21stcentury world economic crisis. Furthermore, the paperwork provides an overview of possible directions of regulation in the field of management compensation, all with the aim to prevent large scale crises in the future. Finally, to complete the research, the authors have analyzed the state in the field of management compensation in Bosnia and Herzegovina.


IMF (1997), Annual Report, IMF, Washington D.C.

Beltratti,A, RM Stulz (2010), The Credit Crisis Around the Globe: Why Did Some Banks Perform Better?, Dice Center Working Paper No. 2010-05, Fisher College of Business.

Committee of European Banking Supervisors (2010), Consultation Paper on Guidelines on Remuneration Policies and Practices, Consultation Paper No. CP42

European Commission (2009), Proposal for a Directive of the European Parliament and of the Council, EC, Brussels.

Fahlenbrach, R, RM Stulz (2011), Bank CEO Incentives and the Credit Crisis, Journal of Financial Economics, 99, 11-26.

Financial Crisis Inquiry Commission (2011), Final Report of the National Commission on the Causes of the Financial and Economic Crisis in the US, US Government Printing Office; Washington.

Gregg, P, S Jewell, I Tonks (2011), Executive Pay and Performance: Did Bankers' Bonuses Cause the Crisis?, International Review of Finance

Walker, D (2009), A Review of Corporate Governance in UK Banks and Other Financial Industry Entities: Final Recommendations, Financial Services Authority

Cooper G., (2009), The causes of the financial crisis, Business Diary, MASMEDIA, Zagreb

Soros G., (2003), About globalization, Samizdat 92, Belgrade

Petrac-Stepanović Ž, (2008), Character of the Global Financial Crisis, the U.S. and Possible Global Consequences, International Policy, Vol. LX, br. 4, Belgrade.

Nanto D., (2009), The Global Financial Crisis: Analysis and Policy Impacts, Congressional Research Services, London

Reinhart C., Rogoff K., (2008), Is the 2007 Financial Crisis So Different?, American Economic Review 98 (2), New York.

Reinhart C, Roggof K, (2009), The Aftermath of Financial Crisis, NBER WP 14656, Cambridge.

Sapir Ž., (2009), From the Financial Crisis to Turning Point, Friedrich Ebert Stifung, Sarajevo.

Sapir Ž., (2008), How the U.S. "Sub-prime" Crisis turned into a Global Financial Crisis that will change the World Economy, Friedrich Ebert Stiftung, Sarajevo.

Matthews, K. & Matthews, O., (2010), Controlling Bankers’ Bonuses: Efficient Regulation Or Politics Of Envy?, Economic Affairs, 30 (1),

Available at:

The financial crisis 2015: History that can be avoided

Available at:, November 2013

Falenbrach R., Stulz R.M., (2009), Bank CEO Incentives and the Credit Crisis, Fisher College of Business, WP No 13.,

Acharya V.V. Richardson M., (2009), Causes of the Financial Crisis, Critical Review vol 21, No 2-3

Taylor J.B., (2008), The Financial Crisis and the Policy Responses: An Empirical Analysis of What Went Wrong, Bank of Canada.

Roubini N., (2008), The Current U.S. Recession and the Risks of Systemic Financial Crisis, Written Testimony for the House of Representatives' Financial Services Committee, Washington D.C.

Malinić D., Compensation schemes for Managers, Faculty of Economics, Belgrade; Securities Commission of the Republic of Serbia.

Available at:

Suljagić,S. (2010), Payment and Reward System in the Function of Increasing Motivation and Satisfaction of Medium-Sized and Large Companies’ Employees, Faculty of Economics; Tuzla.

Tonks I. (2013), Bankers’ Bonuses and the Financial Crisis

Available at:,




How to Cite

Delić, A., & Nuhanović, A. (2014). Management Compensation and the World Economic Crisis: Evidence from Bosnia and Herzegovina. Asian Journal of Business and Management, 2(3). Retrieved from