3 ms·
there are lots of bonus structures that mitigate this risk. some things you can do: 1. clawback clauses. when investments underperform, you take back bonus mo
by andylei 15y ago
there are lots of bonus structures that mitigate this risk. some things you can do:
1. clawback clauses. when investments underperform, you take back bonus money. this goes well with:
2. long term vesting. you don't collect the entire bonus up front. you get it spread out over an extended period of time (say, 10 years), contingent on continued success / your bank still existing.
in fact, many banks and hedge funds already implement these ideas. of course, if you're writing a newspaper article, you can get a lot more pageviews by papering over this fact and saying the most populist thing you can think of.