The Financial Times reports (via Doug Hendren) on the referendum in Switzerland to limit executive compensation, and to make it easier for shareholders to participate in compensation decisions. It also reports on the bonus cap on bankers that has been proposed in the UK. The conservative government in the UK is arguing against the plan to limit banker bonuses. They argue that the bankers will move to a more banker friendly country like the US. The more likely event is that they will look for jobs in hedge funds. They are not regulated by government, and most of them have already established offshore accounts to avoid taxes. Perhaps banks will go back to the old fashioned way of making money by taking in deposits and making sound loans.
In any case Europe is responding to public sentiment against executive compensation excesses. Public anger has been growing even faster that executive compensation.
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