A question I have heard raised on a number of occasions is 'would we be in the mess we're currently facing if there had been a few more grey hairs in the room when decisions were being taken?' The argument goes that too much testosterone was involved in banking operations, which led to high risk strategies being adopted.
In light of this, I enjoyed seeing the publication from the Centre for the Study of Financial Innovation, entitled Grumpy Old Bankers: Wisdom from Crises Past.
There is a great deal of wisdom in the pages from people who have served with distinction over many years. What is particularly revealing is how short a time 'a generation' is now perceived in Wall Street or the City of London - sometimes as little as five years.
ACCA has argued that reward structures need to be based on long-term success and not short-term fixes. It cannot be helpful to the banking industry for someone to come, make considerable amounts of money, and then go in a short time. There must be a way of encouraging individuals to feel they have more of a stake in the long-term welfare of an organisation and to stay to deliver long-term value to mutual benefit.
Your views are as welcome as ever.
Recent Comments