Curbing the excess of banks’ pay

24Apr08

FT Weekend – 8-9/03/2008

Institute of International Finance – association of global banks
Meeting @Rio de Janeiro

“by paying huge bonuses on the basis of short-term performance when negative bonuses are impossible, banks create huge incentives to disguise risk-taking as a value creation”.

NEEDED: a system of rewards that better aligns the interests of the decision-makers with that of the bank as a whole, shareholders and the public.

HOW?
– through bail-outs and rescues for the reckless
– system in bank’s interests

Difficulty for the bank – to act on its own

+ CODE of conduct

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One Response to “Curbing the excess of banks’ pay”

  1. Thanks for you post. Very interesting. I have a few posts on the topic, in case you are interested.


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