Wednesday, November 19, 2008

Finally a Decent Finanical Innovation: Maluses

TW: There has been a clamor for clawbacks to retrieve the billions in bonuses meted out to the finanical geniuses who have contributed to our current financial panic. UBS has created a potential new instrument the corrollary to bonuses, maluses, to address this need.

From the Times of London:
"Senior executives and traders at UBS will forfeit previously earned bonuses if they underperform, under a radical new pay system devised by the stricken Swiss bank.
Just as bonuses (Latin for “good”) are paid out for good performance, maluses (“bad”) will be meted out if the bank subsequently makes losses or if the employee misses performance targets, UBS said. The maluses could wipe out all previously agreed share bonuses and two thirds of all cash bonuses under stringent new rules designed to align the interests of executives and traders with those of shareholders."

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5176083.ece
TW: ps- perhaps someone else will find a similar instrument to retrieve the under-earned tax cuts of the wealthy since 2001 and over consumption of the masses since about 1980 or so...this mess is not entirely the fault of Wall Street run amok, one should never forget...yes I am talking about you.

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