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I didn't mean financial risk. As a public officer, you are taking risk in terms of your public reputation and legal responsibilities. That does factor into the
by nvarsj 7y ago
I didn't mean financial risk. As a public officer, you are taking risk in terms of your public reputation and legal responsibilities. That does factor into the comp - in fact, it is fairly common in certain highly regulated industries for the CEO's entire role to just to take the burden of liability.
- justinjlynn 7y agoSo, how many banking executives were found criminally liable after, say, the 2008 global financial crisis?
- rjf72 7y agoIn places such as Iceland, where bankers have not 'integrated' so deeply with the government, the banks were allowed to crash and top executives served years in prison. [1] This included people all the way up to chairmen. It had a catastrophic short term impact, but Iceland's economy rapidly recovered and remains healthy to this day. Incidentally their current president has an approval rating upwards of 90%. Obama in 2009 was optically in conflict with bankers. Quoting things such as "I did not run for office to be helping out a bunch of fat cat bankers on Wall Street" [2]. 8 years later, he's getting paid $400k for 30 minute talks by them, repeatedly. For some reason banks and investors don't seem so anxious to turn Icelandic presidents into multimillionaires for a few hours of talking once they leave office. [1] - https://www.independent.co.uk/news/world/europe/iceland-to-sentence-ninth-banker-found-guilty-of-market-manipulation-that-helped-cause-2008-a7349711.html https://www.independent.co.uk/news/world/europe/iceland-to-s... [2] - https://www.reuters.com/article/us-financial-regulation-obama-idUSTRE5BA4IF20091211 https://www.reuters.com/article/us-financial-regulation-obam...