Employee Compensation and Financial Performance: Evidence from Commercial Banks of Nepal

Background: The role of employee pay in financial performance is misty, with plenty space to explore. Human resources have been discarded from the mainstream arena despite being a strategic partner.
 Objective: study aims investigate association between compensation and performance.
 Methodology: uses econometric analysis, descriptive correlational trend analysis disclose relationship performance. Employee measured terms staff expenses, ROE ROA measure Results: positively impacts BFIs. Quantitatively, 1 percent rise increases by 0.02 point 0.20 point. Likewise, size firm negatively affects Revenue diversification has positive effect on Similarly, cost-to-income ratio Implications: BFIs must invest employees develop their skills focus providing mercenary non-mercenary benefits employees, enhancing discouraging them shrinking job. Also, shall enhance competitiveness increasing non-interest income while simultaneously reducing interest expenses.