Executive bonuses clawback in the banking sector
Journal Title: Business Ethics and Leadership (BEL) - Year 2017, Vol 1, Issue 1
Abstract
The current post-crisis era in most world countries motivates business entities to focus on improving of risk governance functions. It is mostly concerned to banks because of risky nature of their busi-ness. Before global financial crisis the executive compensation in most banks was excessive, that, in turn, led to systemic risk growth. According to transaction cost theory corporate governance is fo-cused at effective performance of banking transactions. In connection with the above-stated thesis the important task at the time is improving the system of executive remuneration in order to ensure the moderate bank risk level. With this aim in 2008 Swiss bank UBS has implemented new compensation system that assumes the clawback provision. This clause concerning the deferred awards of senior managers’ remuneration was included to increase their accountability for loss-creating or fraud behav-ior. The paper investigates the aftermath of clawback of executive compensation implementation in the biggest European banks and discusses the specific features of the reformed remuneration system amongst financial institutions. Furthermore, after implementation of the clawback provision in leading banks of Europe similar practice has been started in financial institutions of USA, features of which is researched in the paper.
Authors and Affiliations
Olga Afanasyeva
Keywords
Related Articles
- EP ID EP452752
- DOI 10.21272/bel.1(1).25-33.2017
- Views 141
- Downloads 0
Graduate Learners’ Perspectives of Developing ‘Speaking’ Skill in the Classrooms of Non-native English Speakers
The major focus of the current study is to know different students’ perspectives on the different activities, which improve the learners’ speaking skill in the English as Second Language (ESL) or English as Foreign Langu...
Gender Inequality Issues in the Workplace: Case Study of Armenia
This paper summarizes the arguments and counterarguments within the scientific discussion on the issue of gender inequality. The main purpose of the research is to find out gender discrimination issues that occur in work...
Public financial services transparency
Reforming state financial control after Ukraine gained independence was characterized by significant changes, but they had a spontaneous and non-systemic character. Due to uncoordinated transformation, the financial cont...
The Public Good of Internet Usage and its Social Impact: A Business Ethics Approach
Public goods are indispensable for producing value in an economy and their usage is part of resource consumption in by any business. Of the two types of public goods , natural ones and social ones, it has mainly been the...
The Examination of the Appearance of CSR in On-line Scientific Databases
The phrase, corporate social responsibility (or CSR) has become very popular in recent years. A lot of definitions are in the literature. There is no generally agreed definition of corporate social responsibility (or CSR...