Banks rethink incentives as the bonus pool dries up

Henchoz, Sarah
February 2009
People Management;2/26/2009, Vol. 15 Issue 5, p34
The article focuses on trends in banks' incentives system amidst the financial crisis. The traditional incentive structure of giving rewards based on gross revenue was said to prompt bankers to take greater short-term risks, contributing to the crisis. Since bonuses remain an important retention and motivational tool, employees of companies still operating profitably are deemed to expect remuneration. Despite the call for giving incentives to bankers who have demonstrated sustained and strong performance, some have contractual entitlements to bonuses.


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