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英語 から 日本語: Financial Article General field: ビジネス/金融
原書のテキスト - 英語 What's the point of short-term cash bonuses? John Kay, when he pondered this question in his review into the causes of short-termism in the City, concluded a ban was in order. Judges and surgeons, he noted, would be offended by the notion they would do their job better if large sums of extra cash were on offer every year. Why should directors of large public companies expect different treatment?
So well done Lloyds Banking Group for at least entertaining the notion that annual boardroom bonuses should be ditched. This is just one proposal being examined by the bank – but it sounds like one that ought to be adopted.
Within the portfolio of directors' rewards, annual bonuses have grown like weeds in the past couple of decades – it is now common to find levels set at 100% of salary for chief executives, an obvious incitement to short-term decision-making.
In the world of retail banking, such structures make no sense. The heart of the business involves 25-year mortgages, multi-year personal loans and long-term savings. By definition, incentives should be set to encourage risk to be viewed and measured over similar periods. Lloyds' proposals, in their most radical version, would extend the time frame for the payout of incentives to 10 years. That sounds more like it.
Major shareholders, who are being consulted, should encourage Lloyds to break ranks. And they should also tell the bank that any hike in basic salaries, if presented as the price of reform, would be unacceptable.
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