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Another direction one could take concerning this problem is change the reward model of money-managers, similar to vesting in startups. If fund-managers would n
by ulf 18y ago
Another direction one could take concerning this problem is change the reward model of money-managers, similar to vesting in startups.
If fund-managers would not be paid their whole money annually, but subsequently over a longer period of time, they might be more interested in the long-term success of the assets they are managing. For example, if a fund-manager would be entitled to 10M$ for one year, he could get paid 2M$ + interests annually over five years. This way, accountability could be strengthened.