No improvement in pay practices at banks - study

An study commissioned by the Council of Institutional Investors comes to the conclusion that changes to pay practices at major banks in the USA have lead to a deterioration rather than the intended improvement in incentives. The real question now is: if the CII is aware of this situation, why don't its members do something about it? After all, the top 20-30 investment institutions are in effect controlling all major public corporations as their combined stakes often cluster around the 40-50 per cent mark. Pay practices at banks and major financial institutions should be subject to the same restraints as those at any other publicly listed company. We have often suggested simple measures that could drastically alter compensation practices.
01/12/2010

0 comments:

Post a Comment