In the financial sector, the fact that traders at banks and managers at hedge funds in particular are heavily involved via premiums if they increase profits on a large scale by any means. However, if the exposures later result in losses for the institution – and, as in the case of the subprime crisis, even for the global economy as a whole – then they remain unaffected. The supervisory authorities have repeatedly been called upon to counter such “system-threatening excesses. In this context, it is primarily up to the banks themselves to adjust their incentive systems accordingly, either within the institution or at the level of the associations. – See investment liability, bonus, fixed, fringe benefits, guarantee commission, handshake, golden, million grave, premium, rebbes, sleeping money, compensation, loss absorption, personal.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/