The big shift has been the rise of options and long-term compensation--last year it represented 70% of remuneration.
After all, part of the long-term return from investments is compensation for the risk of investing in uncertain times.
While RBS was careful to state that Hourican had no role in the wrongdoing, it ultimately took place on his watch and he will forfeit his unvested bonus and the portions of his long-term compensation subject to clawbacks.
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The dominance of short-termism is evidenced by the magnitude of institutional stock "renting" for terms of 12 months or less, the volume of high-speed, high-frequency algorithmic short-term trading, the short average tenures of chief executive officers and the dominance of executive compensation tied solely to short-term results.
Again, whether they're tying much more of their compensation, again, to long-term equity that does invest immediately instead of to short-term cash.
Apparently, Mr. Jefferies is undeterred by an investigation by an executive compensation watchdog group, The Shareholders Foundation, on behalf of long term shareholders.
Compensation is made up of salary, cash bonuses and long-term incentives, which are traditionally stock options that give executives the right but not the obligation to buy stock at a fixed price at some point in the future.
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But most compensation packages are linked not to long-term value creation and skillful management of long-term risks, but to quarterly or annual bottom line performance.
Mr Roberts said he did not want to disclose the exact sum of compensation but said it was "enough to cover the injuries and any long term problems I may have".
The investors and directors McKinsey surveyed want companies to move toward separating the roles of chief executive and chairman, to make directors more independent and accountable, and to scale back and restructure executive compensation so that it is aligned more closely with the creation of long-term value.
It wasn't -- it's not just about ensuring that there is -- that any compensation should be more directly tied to long-term equity versus short-term cash, but you have to make a strong evaluation about the sheer level and size of your compensation in the environment in which we exist.
Deferred compensation, suspensions for performance enhancing substances and inflated salaries run the gamut of short and long term liabilities that franchises consistently encounter.
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