Compensation Regulation Watch '09

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The summer of compensation legislation is almost upon us and the Swiss have radioed in with some general guidelines for how they intend to deal with the issue. It should come as no surprise that the main focus is on longer-term, performance-related payment structures that look to penalize individuals whose short-term gains turn into longer term losses. However FINMA, the Swiss regulator, did stop short of establishing guidelines to flat out restrict compensation. According to FINMA, "From a legal perspective, FINMA is not authorised to restrict the remuneration paid to employees. Indeed, this would not be a sensible option." Barney Frank disagrees.
Swiss bank watchdog to tighten bonus rules [FT]
Related : Bonus Watch '09: You Get NOTHING (Not Even Toxic Waste)

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