Discussions in Europe on variable compensation in the financial sector

• Main Author: Hengel, Ruben van den
• Other Authors: EU Centre in Singapore
• Format: Working Paper
• Language: English
• Published: 2014
• Subjects: DRNTU::Social sciences::Economic theory::Public finance
• Online Access: https://hdl.handle.net/10356/103872; http://hdl.handle.net/10220/19389
• Institution: Nanyang Technological University

Bonuses – 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...