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After years of approving record bonuses while dividends and earnings climbed, shareholders are now pressing companies across all industries to review their bonus systems.
"Vince Cable needs to move beyond tough talk in the media and take action to force the banks to be fully transparent in their pay and bonus systems".
Big banks are grappling with changes to their bonus systems, which regulators claim may have encouraged employees to take excessive risks.
Larsson observed with dismay the rise of "greed, bonus systems, golden parachutes and corruption beyond imagination – all in all a total disrespect for the traditional Swedish values of honesty, equality and the common good".
Companies of all sizes — and even many nonprofit organizations, like school districts — have adopted bonus systems for a variety of reasons: as a way to reward performance, to hold down base-pay levels, and to provide more flexibility to smooth out costs.
Oliver Lodge, a former director of the FSA who now runs OWL Regulatory Consultancy, expressed concern about the European regulator's plans to link bonus payments to basic salary, pointing out that the CEBS had earlier said bonus systems should be flexible enough to allow for bonuses to fall to zero.
Similar(40)
Attempts to change that culture focused on the bonus system.
A peer-to-peer bonus system is made easy for employers.
But a soundly structured bonus system can offer the right incentives.
(Gawker's bonus system, which was tied to page views, helped to cement this reputation).
The bonus system was extended to transit and housing police officers in 1988.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com