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Do bankers’ bonuses reward risky behavior?

In the run-up to the 2008 financial crisis, some of the most troubled financial firms also doled out whopping bonuses to their top executives. In response, the United States — along with the UK and the European Union—imposed new regulations on executive pay, with the rationale that executive pay was overly skewed to reward short-term profits and encouraged risky behavior that undermined a sound financial system.

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Chris Cillizza 09 Jan, 2012

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Source: http://feeds.washingtonpost.com/click.phdo?i=54aad224082b602d887d23a8e548eb2e
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