Background: The competitive and dynamic operating environment at deposit money banks in Lagos State requires focussed management of resources which attractive compensation management of the organisation executive directors could guarantee. The operating environment has brought about series of challenges including rendering poor services, culminating in steady decline of profitability which had impacted negatively on returns accruable to shareholders. Methods: The study employed cross sectional survey research design where four hundred and twenty-nine copies of the research instruments were administered to purposively selected respondents who were senior and executive staff of the selected banks in Lagos State. The response rate on the questionnaires distributed was 398, which represents 92.8% of the study population. The data were processed using (SPSS version 26). Results: The result of multiple regression analysis showed that executive bonus (β = 0.086, p = 0.009) and recognition (β = 0.133, p = 0.007) have positive and significant effect on return to shareholders and base salary (β = 0.054, p = 0.293) and supplemental benefits (B = 0.040, p = 0.179) also have positive, but insignificant effect on return to shareholders. Further analysis revealed a collective positive significant effect of executive compensation sub-variables on customer acquisition (F(4,392)) = 9.248, p<0.000, R2 = 0.078) indicating that combination of executive compensation sub-variables was statistically significant in explaining changes in return to shareholders. Conclusion: The study concluded that executive compensation packages is important to shareholders value creation and management of deposit money banks should ensure that their senior and executive staff compensation management are attractive to motivate higher productivity. It is recommended that process driven compensation management should be instituted to promote competitive spirit and ensure objective evaluations to reduce conflicts arising from perceived double standard treatment.