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waterfall-detail Bonuses: Economic logic leads to a "paradox"

Paradox: a statement that is seemingly contradictory or opposed to common sense and yet is perhaps true.

The media in Europe are starting to call skyrocketing banker salaries across Europe the "bonus paradox."

The EU limit on bonuses to 100 percent of salary (or 200% with shareholder approval) is ushering a paradoxical parade of unintended consequences. But just because consequences are unintended doesn't mean they are unpredictable.

The economic ignoranti fully expected overall banker pay to be clipped by the EU measure. José Manuel Barroso, president of the European Commission said,Bonus “This is a question of fairness." So, there it is." read more

 

Hodak Events

Marc was published in Directors & Boards.

DBAR14 Cover ToC

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Read Gregory Millman's Wall Street Journal Articles quoting Marc:

How Skimping on CEO Pay Can Drive Pubic Company Underperformance &

The Morning Risk Report: High-Performing Businesses Ignore Pay Critics

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Read Marc's opinion about the WalMart board where he is quoted here by Patricia O'Connell for Advisen Risk Network.

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Learn more about Marc's expetise by watching videos from ethicalsystems.org on his speaker page.  He is also a regular contributor, see more here.

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Watch Marc's speech "Hot-Button Pay Issues for 2014" from the CEO Netweavers Directors meeting in Dallas, TX.

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