Employee Rewards and Benefits News
Sales incentive plans in decline
All G20 Group signatory countries have signed its Financial Stability Forum's remuneration policies. Regulators in Switzerland, the US, the UK and Australia have issued guidelines on how to manage bank pay in future. Competition will make banks follow a similar track with their risk management view of remuneration policies. Risk-adjusted profit measures for determining annual bonuses could lead to the decline of the traditional revenue-based sales incentive plan.
In the end though, companies must control their pace of expansion from within during future bull runs. Active shareholders and boards must apply the brakes to curb excesses on compensation measures.
October 15th 2009
