Wednesday, 27 November 2013 - 04:32
Rewards policy will not decrease bonuses
A stricter rewards policy will not result in a dramatic decrease of overall bonuses in the financial sector. If bonuses go down, fixed salaries will just go up, predicts professor of financial economics in Tilburg, Sylvester Eijffinger.The system works the same as communicating vessels, according to the professor. If the government caps the bonuses at 20 percent of the fixed salary, it will result in the salary going up, explains Eijffinger.
[[{"type":"media","view_mode":"media_large","fid":"26586","attributes":{"class":"media-image size-medium wp-image-10108","typeof":"foaf:Image","style":"","width":"201","height":"300","alt":"bag of money"}}]] bag of money
thenotoriouskcg
Flickr In dealing with an international market, if you need a good financial manager, and you have to recruit internationally, you will have to pay the market price. That is just the way it works. Politicians think they can regulate against the market, but that is harder than it looks, according to the professor.
![[[{"type":"media","view_mode":"media_large","fid":"26586","attributes":{"class":"media-image size-medium wp-image-10108","typeof":"foaf:Image","style":"","width":"201","height":"300","alt":"bag of money"}}]]](/sites/default/files/wp-content/uploads/2013/11/bag-of-money_0.jpg){kind=link}
thenotoriouskcg
Flickr In dealing with an international market, if you need a good financial manager, and you have to recruit internationally, you will have to pay the market price. That is just the way it works. Politicians think they can regulate against the market, but that is harder than it looks, according to the professor.