26 October 2010

Basel To Wall Street: Golden Parachutes Bad

The Basel Committee has issued corporate governance principles . . . . The principles flatly state that golden parachute arrangements under which terminated executives receive large payouts irrespective of performance are generally not consistent with sound compensation practice.

From here.

Basel is the same group coming up with capital requirements for the global banking system. The statement on Golden Parachute arrangements is the most clear of the group's pronouncements.

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