Clawback on bank bonuses: nice theory, but will it really work?
Excessive bonuses should be clawed back from executives, everyone agrees on that, but will it work and how should it be executed? Chancellor Alistair Darling has has requested that poor performances should be punished with clawback or malus (opposite to 'bonus') in order to deter traders to receive huge bonuses that eventually could lead to a risk for their companies or banks. But there is some disagreement on how to do so : to withdraw bonuses that are allready paid or to limit future bonuses? In the end, it will be very hard to determine for what performances executives should get paid and the clawback-theory may never get executed to the fullest.
Miguel De Witte
1 opmerking:
Captivating title and the post delivers by providing a balanced account on what clawback is, its rationale and possible pitfalls.
Good style variations (different elements to start sentences)
well done
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