Reward in banks is flawed, says report

Phillips, Lucy
May 2009
People Management;5/21/2009, Vol. 15 Issue 11, p9
The article discusses a report by the Treasury Select Committee of the British Parliament on the role played by serious flaws and shortcomings in remuneration practices in the banking crisis. According to committee chairman John McFali, reckless and excessive risk taking was caused by bonus-driven remuneration structures. The report also outlines the failures of non-executive directors in determining senior managers' pay. The Financial Services Authority (FSA) was criticized in the report for not giving sufficient priority to remuneration policies.


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