Corporate Regulation

Other Report

Regulation of Executive Compensation in Financial Services

Author: Squam Lake Working Group on Financial Regulation

Many people argue that inappropriate compensation policies in financial companies contributed to the global financial crisis. Some say the overall level of pay was too high. Others criticize the structure of pay, claiming that contracts for CEOs, traders, and other professionals induced them to pursue excessively risky and short-term strategies. This Working Paper, the eighth in the Squam Lake Working Group series distributed by the Center for Geoeconomic Studies, argues that governments should generally not regulate the level of executive compensation at financial firms. Instead, a fraction of compensation should be held back for several years to reduce employees' incentives to take excessive risk.

See more in Financial Crises; Corporate Regulation; United States

Other Report

Improving Resolution Options for Systemically Relevant Financial Institutions

Author: Squam Lake Working Group on Financial Regulation

This Squam Lake Working Group Paper endorses legislation that would give authorities the necessary powers to effect an orderly resolution of large complex financial institutions. As part of this authority, every such institution should be required to create "living wills" that would help authorities address the difficulties that might arise in a resolution.

See more in Financial Crises; Corporate Regulation; United States

Primary Sources

U.S. Ambassador to the OECD Kornbluh on the Occasion of the Consumer Policy Toolkit Roundtable, July 2010

U.S. Ambassador to the OECD Karen Kornbluh presented these remarks, "U.S. Leadership: Better Protection, Lighter Touch," to the OECD's Committee on Consumer Policy, on July 10, 2010. She explained the consumer protection toolkit, which was created to guide government policies to address unfair practices in the marketplace.

See more in United States; Corporate Regulation; Global