Regulating Remuneration Schemes in Banking

By: Isabel Argimón, Gerard Arqué and Francesc Rodríguez – Bank of Spain


This article was first published as a chapter in Basel III and Beyond on July 27, 2011, by Risk Books In the wake of the current financial crisis, compensation schemes in financial firms have received heightened attention. The reason is that executive compensation packages have been regarded as one of the key drivers in the generation of the crisis, although a causal link has not been established. The discussion has not been limited to the role played by executive pay arrangements but it a