The chemistry of compensation

Regulators across the world are clamping down on executive compensation in a bid to align employee remuneration with sound risk management principles. Despite the good intentions, many of the proposals could have unintended consequences. Peter Madigan reports

'Parasite' is a label that has been attached to members of the financial services industry frequently over the past 12 months. Cast by some as leeches grown fat on the sweat and toil of hard-working members of society, bankers from Wall Street to the City stand accused of gambling away the investments and retirement savings of ordinary citizens in the rabid pursuit of disproportionately large bonuses.

Examining the lessons of the credit crisis, a number of national and supranational regulators