IIF: Pay rates too biased towards front office

IIF: Pay rates too biased towards front office

marc-leipoldt

WASHINGTON, DC – The ratio between pay for risk managers and the front office is still too biased towards the business, contributing to the skewed remuneration incentives for risk-takers that was partly blamed for the financial crisis, says an industry study. A report from the Institute of International Finance (IIF) and consultancy Oliver Wyman suggests banks have implemented some reforms but will need to go much further to comply with regulations on pay practices for senior executives