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We examine the ratio of CEO to employee pay (the pay ratio) for a broad sample of U.S. commercial banks. For the vast majority of the sample, pay ratios are substantially lower than the levels popularized in the financial press. Pay ratios are increasing in firm size, performance and leverage, and decreasing in firm risk. We document a significant convex (concave) relation between the pay ratio and future firm risk (operating performance), but the economic magnitude of these effects isdoi:10.2139/ssrn.2529112 fatcat:5z556kpqovbr5ima26tunry7fq