Exec bonuses to be scrutinised
The banking system regulator APRA will take action against bank executives receiving bonus and incentive payments that are based on short term benchmarks and do not balance risk and reward. Chief executive of APRA John Laker said yesterday that it was necessary to encourage bankers to take a longer term view of the cycle. Laker also raised the issue of reining in incentives for selling debt. He ruled out taking action against the high salaries of financial industry senior executives.
Source: The Australian Financial Review