BANKERS' BONUSES, A POSSIBLE SOLUTION ?

Everyone seems to hate a possible solution to the problem of Bankers' "Bonuses" !!!  But what is the problem ? 

It is that Bank directors negotiate employment contracts which are comprised of a basic salary plus a "Bonus" dependent on results !!!  This same technique is true of Directors of other big Companies or Groups !!!

At that point nothing is really illegal, but subsequently there are many diverse objections.  It is then that legislation is envisaged, invoked in fact, to cover the lack of legal means to stop current abuses. 

These negotiated contracts take place without any real  Shareholder agreement. 

There are basic remedies that must be envisaged in any EU or National laws to prevent future abuse.  

a)  The contracts of all Directors must be submitted for Shareholder approval when they are nominated or engaged.

b)  Any exceptional payments to Directors in the form of Bonuses on results (financial or other) should be made payable only five years after the year-end concerned.  (This is to cover the subsequent discovery of "unexpected losses" !)

Obviously such contracts should be filed centrally once signed.  Auditors must be informed of any such contracts shortly after their conclusion.
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