Otherwise they would be slashing their pay. But it is oh so difficult when you get used to living high on the hog, all the while destroying the world economy.
Banks almost unanimously agree that their compensation packages contributed to the global financial crisis but still are struggling to correct some of the flaws in their pay structures, according to a survey of financial institutions due for publication Monday.
The survey, conducted by U.K. management consultancy Oliver Wyman, was commissioned by the Institute of International Finance, a global association of banks and other financial companies based in Washington, D.C. It found 98% of responding banks "believe the compensation structures were a factor underlying the crisis."
But it also brought to light some of the obstacles to changing pay arrangements, including the concern among bankers they still don't have reliable methods to measure risks.
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