Too often after corporate scandals, directors claim ignorance. The corporate regulator is arguing they should have asked more questions.
- Professor - Risk governance, culture, remuneration, Macquarie University
Executives are often given bonuses that “vest” on a particular date. If the share price is high on that date, regardless of the reason, they get payouts.
“Balanced scorecards”, of the kind countenanced by the Australian Prudential Regulation Authority, are inherently unbalanced.
Researchers found that larger banks are more likely than their smaller peers to experience “operational losses”, which includes a failure to meet obligations to clients.
Research shows that cash bonuses are responsible for many recent financial scandals. The alternative isn’t that great either.
Even though the Prime Minister and heads of the big four banks argue costly political uncertainty is the reason for the royal commission, experts argue the banks’ behaviour itself is the real cost.
New research shows that pay incentives, culture and employee attitudes all contribute to the failure to comply with policies and regulations.
New research shows increasing female staff numbers is, on its own, unlikely to change the way risk is managed in banks.
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