Comments on: Incentive Compensation as a Risk Factor http://6ampacific.com/2008/05/15/incentive-compensation-as-a-risk-factor/ Meandering Musings on Globalization Tue, 07 Feb 2012 21:29:39 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: Basab http://6ampacific.com/2008/05/15/incentive-compensation-as-a-risk-factor/comment-page-1/#comment-14130 Basab Mon, 16 Jun 2008 02:19:05 +0000 http://6ampacific.com/?p=187#comment-14130 Satya, Just writer's block. I'm back now! thanks for asking. Satya,

Just writer’s block. I’m back now!

thanks for asking.

]]> By: Satya http://6ampacific.com/2008/05/15/incentive-compensation-as-a-risk-factor/comment-page-1/#comment-14088 Satya Fri, 13 Jun 2008 03:17:01 +0000 http://6ampacific.com/?p=187#comment-14088 Basab, It has been a long silence! Are you alright? I mean your health. Satya Basab,

It has been a long silence!

Are you alright? I mean your health.

Satya

]]> By: Suvendu http://6ampacific.com/2008/05/15/incentive-compensation-as-a-risk-factor/comment-page-1/#comment-13997 Suvendu Wed, 04 Jun 2008 03:38:35 +0000 http://6ampacific.com/?p=187#comment-13997 This reminds me the testimony given by ivy league US executives, past and present, before the "Committee on Oversight and Government Reform" on high executive compensation. I especially hooked on to the comments of Charles Prince, former CEO of Citigroup(http://www.ethicsworld.org/corporategovernance/PDF%20links/Prince%20CEO%20pay.pdf). He has been forthright in his errors on mortgage positions, risks involved and at the same time he has been vocal on some of the success stories of Citi during his tenure and also the policy of Citi executive compensation structure. All fine till we have the subprime avalanche. What went wrong then? So, does that mean executive compensations are sky-rocketing during market driven economic growth and they are falling flat or executive lay offs during time of market trough. This brings to the question- "Are we concerned about the risk of executive compensation or are we concerned about organizational impotence to address emanating enterprise risk?" I am still thinking!! This reminds me the testimony given by ivy league US executives, past and present, before the “Committee on Oversight and Government Reform” on high executive compensation. I especially hooked on to the comments of Charles Prince, former CEO of Citigroup(http://www.ethicsworld.org/corporategovernance/PDF%20links/Prince%20CEO%20pay.pdf).

He has been forthright in his errors on mortgage positions, risks involved and at the same time he has been vocal on some of the success stories of Citi during his tenure and also the policy of Citi executive compensation structure. All fine till we have the subprime avalanche. What went wrong then? So, does that mean executive compensations are sky-rocketing during market driven economic growth and they are falling flat or executive lay offs during time of market trough. This brings to the question- “Are we concerned about the risk of executive compensation or are we concerned about organizational impotence to address emanating enterprise risk?” I am still thinking!!

]]> By: Vivek http://6ampacific.com/2008/05/15/incentive-compensation-as-a-risk-factor/comment-page-1/#comment-13924 Vivek Thu, 29 May 2008 03:41:37 +0000 http://6ampacific.com/?p=187#comment-13924 Is this issue really limited to capital markets? I believe that "uncontrollable executive greed" is a serious business issue across industries, and a much bigger social issue almost everywhere. It may have started in certain industries and regions but now it is a deep malaise almost everywhere. There was a suggestion by Indian Prime Minister (Dr. Manmohan Singh) some months ago to limit rising executive compensation to keep India competitive. The furore that it raised from business leadership in India made it very clear that it would not be easy to talk about this, let alone resolve it... we humans may have developed too many bad habits, such as this, and may not be able to change till there is much more trouble. Habits and culture change very slowly, if at all, or under extreme pressure conditions. Is this issue really limited to capital markets? I believe that “uncontrollable executive greed” is a serious business issue across industries, and a much bigger social issue almost everywhere. It may have started in certain industries and regions but now it is a deep malaise almost everywhere.

There was a suggestion by Indian Prime Minister (Dr. Manmohan Singh) some months ago to limit rising executive compensation to keep India competitive. The furore that it raised from business leadership in India made it very clear that it would not be easy to talk about this, let alone resolve it… we humans may have developed too many bad habits, such as this, and may not be able to change till there is much more trouble. Habits and culture change very slowly, if at all, or under extreme pressure conditions.

]]>