There's a higher-level discussion wherein the compliance guys are supposed to be the watchmen, but if you give them stock or options, then they are suddenly incentivized to do whatever is most profitable for the firm. That's the discussion mentioned.
The counterpoint is that, if you have strong regulators, then they will sniff out the funny business anyway. The resultant fines would hurt the bank's stock, which would still be negative for the compliance personnel.
There, we just had a discussion as to compliance workers' future compensation. And we're not even in the business!
The counterpoint is that, if you have strong regulators, then they will sniff out the funny business anyway. The resultant fines would hurt the bank's stock, which would still be negative for the compliance personnel.
There, we just had a discussion as to compliance workers' future compensation. And we're not even in the business!