The purpose of this study is to examine theimpact of financial performances on presidentsâ€™rncompensation in Ethiopian commercial banks. In light of this objective the study adoptedrnmixed research approach using 8 commercial banks operate in Ethiopia.These banksarernoperatesin the industry for the last 10 years i.e. from 2004 up to 2013. Thus, the study used arntotal of 80 observations. The study used documentary reviews of annual reports and in-depthrninterviews to test stated research hypotheses and to answer the research questions. The datarnwas mainly analyzed on quantitative basis using Eviews 6 software, OLS regression analysis.rnFurther, arguments were made by the support of in-depth interviews.The results showed thatrnperformance of banks have no impact on president compensation of Ethiopian commercialrnbanks. However, the result showed a significance negative relationship between ownershiprnand president compensation. In addition, the study founds a positive significance relationshiprnbetween bank size and president compensation. Furthermore, the study found a negativerninsignificancernrelationshiprnbetweenrncapitalrnadequacy,rninflationrnandrnpresidentrncompensation.The study also found that one period lagged value of compensation is the mainrndeterminants of compensation. Thus, commercial banks in Ethiopia should givernconsiderations for performance and inflation to align share holder interest with that ofrnpresident.rnKeywords: performance, president compensation, ownership, bank size, capital adequacyrnratio, inflation, lagged value and share holder interest