Separately, bankers’ remuneration could become a target for regulatory moves in the UK and the US. Although it is difficult to see how governments could get involved in the intricacies of tying reward to risk, that does not make it impossible in a heavily regulated industry dependent on government goodwill in countless ways.
Spectacles such as that of Stan O’Neal, former Merrill Lynch chief executive, at a hearing in Congress in March excusing his $161m retirement package as “deferred compensation, stock and options that I earned during the years prior to 2007” provide politicians with ammunition.
Would you like to comment?
Join Diigo for a free account, or sign in if you are already a member.