With pay packages and bonuses in the financial sector under scrutiny, regulators are seeking to reform remuneration schemes and tackle the culture of taking huge risks
Risk and reward – such lovely alliteration makes this pairing feel so logical. But if there’s one thing we’ve learned in the past year, it’s that markets, economies, companies, investors and individuals rarely work in ways the average Vulcan would approve of. Much less so in a bull run such as the one that is currently crashing around our ears.
That could go some way towards explaining the hideously inflated remuneration packages director-level executives have been enjoying, while gold-plated capitalism has been filling in for an absent common sense. And the latter’s return from the dead amid what many believe is a global recession – created on the back of a philosophy of taking on huge risks and not bothering to mitigate them properly – explains why time is now being called on those inflated pay packets that, in not reflecting risks undertaken, exacerbated the disastrous consequences of those risks that we’re seeing now.
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