Please use this identifier to cite or link to this item:
Full metadata record
DC FieldValueLanguage
dc.contributor.authorHengel, Ruben van denen
dc.identifier.citationHengel, R. v. d. (2014). Discussions in Europe on Variable Compensation in the Financial Sector (EUC Working Paper, No. 20). Singapore: EU Centre.en
dc.description.abstractBonuses – which are often used to mitigate principal-agent problems and to encourage employees to work harder – have increased tremendously in the financial sector during the last decade, and have often been seen as a contributing factor to the financial crisis of 2008. The recent European Union (EU) action to adopt a policy that restricts bonuses paid to bankers may seem promising at first, but this does not address the real issues behind variable rewards. Compensation policies should be changed to encourage responsible risk-taking and decision-making through the implementation of broader performance metrics, forfeitable holdbacks and hybrid bonds. Furthermore, a change in organisational culture is needed to improve ethical behaviour leading to a re-balancing of stakeholders’ interests in the financial sector.en
dc.format.extent8 p.en
dc.relation.ispartofseriesEUC working paper, No. 20-14en
dc.rights© 2014 EU Centre in Singapore.en
dc.subjectDRNTU::Social sciences::Economic theory::Public financeen
dc.titleDiscussions in Europe on variable compensation in the financial sectoren
dc.typeWorking Paperen
dc.contributor.organizationEU Centre in Singaporeen
item.fulltextWith Fulltext-
Appears in Collections:EUC Working Papers
Files in This Item:
File Description SizeFormat 
Discussions in Europe on Variable Compensation in the Financial Sector.pdf404.94 kBAdobe PDFThumbnail

Google ScholarTM


Items in DR-NTU are protected by copyright, with all rights reserved, unless otherwise indicated.