An Analysis of Recent Regulatory Changes on Executive Remuneration Structure of Banks in the European Union PDF Download

Author: Ana Rašović
Publisher:
ISBN:
Category :
Languages : en
Pages : 50

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Author: Maxim Hohmann
Publisher: Anchor Academic Publishing
ISBN: 3960670753
Category : Business & Economics
Languages : en
Pages : 61

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The excessive risk-taking at banks might account for the failure of financial undertakings, as well as to systemic problems in the European Union and around the world. The inappropriate design of remuneration systems in many financial institutions is reported to induce such risk-taking. The EU regulators have intervened through legislative measures which have been differently implemented in Member States. Such legislative measures face critics due to the restriction in banks’ freedom of business. However, this book will point out that regulations are necessary and can be justified in order to protect the common good of a sound functioning financial market. Nevertheless, the effectiveness of current legislative provisions is challenged. Therefore, this book will critically analyse the legislation of bankers’ remuneration, focussing on relevant EU, UK and German measures.

Author: John S. Beasley
Publisher: Edward Elgar Publishing
ISBN: 1781005109
Category : Business & Economics
Languages : en
Pages : 553

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Research on executive compensation has exploded in recent years, and this volume of specially commissioned essays brings the reader up-to-date on all of the latest developments in the field. Leading corporate governance scholars from a range of countries set out their views on four main areas of executive compensation: the history and theory of executive compensation, the structure of executive pay, corporate governance and executive compensation, and international perspectives on executive pay. The authors analyze the two dominant theoretical approaches – managerial power theory and optimal contracting theory – and examine their impact on executive pay levels and the practices of concentrated and dispersed share ownership in corporations. The effectiveness of government regulation of executive pay and international executive pay practices in Australia, the US, Europe, China, India and Japan are also discussed. A timely study of a controversial topic, the Handbook will be an essential resource for students, scholars and practitioners of law, finance, business and accounting.

Author: Tito Boeri
Publisher: OUP Oxford
ISBN: 0191648582
Category : Business & Economics
Languages : en
Pages : 311

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Book Description
The recent financial crisis has created a public outcry over top-executive pay packages and has led to calls for reform of executive pay in Europe and the US. The current controversy is not the first - nor will it be the last - time that executive compensation has sparked outrage and led to regulation on both sides of the Atlantic. This volume compares US and European CEOs to trace the evolution of executive compensation, its controversies and its resulting regulations. It shows that many features of current executive compensation practices reflect the, often-unintended, consequences of regulatory responses to perceived abuses in top-executive pay, which frequently stem from relatively isolated events or situations. Regulation creates unintended (and usually costly) side effects and it is often driven by political agendas rather than shareholder value. Improvements in executive compensation are more likely to come from stronger corporate governance, and not through direct government intervention. The volume also examines the effects of incentive schemes and the patterns of performance related pay both within and across countries. It documents a number of empirical regularities and discusses whether government should intervene to support the implementation of incentive pay schemes. It argues that it makes little sense to undertake reform without detailed simulations of the effect on the economy under alternative economic scenarios, based on sound analysis and extensive discussion with labour, management, and government decision-makers.

Author: Christoph van der Elst
Publisher: Aspen Publishers
ISBN: 9789041156075
Category : Law
Languages : en
Pages : 0

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è^-Attitudeè^-- looms large in any discussion of executive compensation. Yet here is a book that restricts its remit to what can actually be discovered about the corporate and contractual facts, figures, and rationales that determine how much a company director è^-earnsè^-- in an increasingly complex system of executive remuneration that seems to be taking root worldwide. In a remarkably insightful collection of articles, legal scholars from ten different countries address the state of the art of executive service contracts in twelve different jurisdictions, as diverse as (on the one hand) the European Union, its central Member States and the United States, and (on the other) Iceland and Romania. Their analysis penetrates beyond the often vague regulatory framework to actual survey figures, consultantsè^-- reports, and even data from a number of specific firms.

Author: Victor Ediagbonya
Publisher:
ISBN:
Category :
Languages : en
Pages : 8

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The article examines the various changes in terms of regulating the remuneration of various staff in banks and other financial institutions following the financial crisis. It has been established that one of the reasons for the financial crisis is as a result of the irresponsible lending on the part of bankers in return for huge bonuses. The Article looked at the regulation at the European level, the United Kingdom Challenge of the relevant European directives and regulation in relation to the remuneration. Lastly, the article the article juxtaposed between the bankers' remuneration regulations at the European Union level and that of United Kingdom in terms of the recent regulatory regime. It argues that the United Kingdom has a more robust legislation not comparable to any other countries within the European Union.

Author: Guido Ferrarini
Publisher:
ISBN:
Category :
Languages : en
Pages : 55

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Book Description
In this chapter, we analyse current trends in the regulation and practice of executive remuneration. No doubt, the role of regulation in this area is on the rise, particularly after the recent financial crisis, and the standards as to pay governance and structures are spreading from the financial sector to the non-financial one. As a consequence, today's remuneration practices are shaped not only by the need to reduce managerial agency costs at listed companies through appropriate incentives, but also by the hard and soft laws tackling corporate governance and remuneration structures. Moreover, regulation also responds to social issues and political pressures, reflecting concerns about either inequality in the distribution of wealth or incentives to undertake “excessive” risks in the financial sector. We examine, in particular, the main policy questions concerning incentive pay, including the optimal design of stock options and the importance of longterm pay. Amongst the governance mechanisms, we consider both the role of boards and independent directors, and that of shareholders under say on pay rules, taking into account the rise of shareholder engagement in listed companies across the Atlantic. We also analyse regulatory developments in Europe over the last decade and current postcrisis proposals by the Commission, comparing the same with developments at member state level and in the US. In particular, we highlight the impact of say on pay rules on shareholder activism, expanding on the role of proxy advisors and the behaviour of large institutional investors. We lastly focus on the regulation of pay structures, showing that long-term incentives are clearly favoured for both financial and non-financial companies by either regulators or institutional investors. However, financial institutions are the main target of post-crisis reforms, firstly at international level and secondly in the US and the EU, where the FSB principles have been implemented along partially diverging routes. CRD IV, in particular, has marked a new trend in the regulation of bankers' pay, by imposing a bonus cap that we criticize from an economic perspective and which clearly goes beyond the international principles.

Author: Guido Ferrarini
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
This article examines the current controversy as to the effectiveness of executive remuneration as a tool of corporate governance but places the analysis in the particular context of the dispersed ownership/blockholding ownership faultline which runs across European corporate governance. It reveals that there is a close relationship between governance systems and the sophistication and rigour of the regulatory response to executive remuneration. To place the European responses to the executive remuneration question in context, Part I sets out the main theoretical arguments which frame the executive remuneration debate and examines the link between remuneration and corporate governance. Part II examines, in the light of the preceding discussion, the regulatory strategies adopted by EU Member States with regard to executive remuneration and reveals the extent to which their responses track corporate governance systems in terms of sophistication and degree of intervention in remuneration practices, particularly with respect to disclosure. Overall, regulatory strategies focus on company disclosure and corporate governance structures, and are grounded both in public regulation and in corporate governance best practices. Part III discusses reform perspectives with particular reference to the 2002 Winter Report and the 2003 Company Law Action Plan.

Author: Guido Ferrarini
Publisher:
ISBN:
Category :
Languages : en
Pages : 18

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Book Description
The paper outlines the developments in the EU regulatory framework for executive remuneration since 2004 and going through the financial crisis. It also presents the results of an analysis of the remuneration practices adopted by the largest European listed firms before and after the crisis, drawing policy conclusions on the efficacy and prospects of reforms, in consideration of their implementation so far.

Author: Rishi Goyal
Publisher: International Monetary Fund
ISBN: 1475569823
Category : Business & Economics
Languages : en
Pages : 31

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Book Description
The SDN elaborates the case for, and the design of, a banking union for the euro area. It discusses the benefits and costs of a banking union, presents a steady state view of the banking union, elaborates difficult transition issues, and briefly discusses broader EU issues. As such, it assesses current plans and provides advice. It is accompanied by three background technical notes that analyze in depth the various elements of the banking union: a single supervisory framework; a single resolution and common safety net; and urgent issues related to repair of weak banks in Europe.