Actually the time for “big changes in banker pay” came years ago back in the 2008 collapse, but we will take the changes as soon as we can get them… After 6 years of token gestures and tinkering at the edges of needed reforms, this latest talk from the IMF has the smell of progress. See: IMF: time as come for big changes in banker pay.
It doesn’t take 2000 pages of legislation to change the incentives that have bankrupted the financial system, just 4 simple large strokes:
- cut the line of credit between taxpayers (gov’t) and risk taking at financial firms by restoring Glass Steagall,
- pay banker bonuses in bonds of the companies they manage, not in equity,
- hold the executives personally accountable for the breaches of the corporations under their management,
- claw back executive pay where they are found to have broken rules.
Financial system solved. Then its back to work on the global issues that are actually worthy of all our time and attention like energy, health, education, water, sustainable biosphere…