Toward a more balanced banking remuneration in EU: will reputation and regulation do the job?
The eighth issue of our sustainability focus.
In the last decades income inequality has grown substantially in most developed countries, and it has been made even larger by the financial crisis. The remuneration of executives, especially of bankers, is increasingly attracting the attention of the public opinion and of investors. In this context, unreasonable annual bonuses can also represent a misguided incentive for excessive risk-taking. In recent years, international regulators made significant steps to reduce the short-termism of banks but, as also stressed in Vigeo’s analysis, banks have been slow in anticipating and adapting to the international recommendations on remuneration. This edition of Vigeo’s Sustainability Focus provides an insight into the main stakeholder concerns and business risks related to executive remuneration in European large banks.
Community Involvement, Europe