June 11, 2009
Unintended Consequences of Executive Compensation Regulation Threatens to Worsen the Financial Crisis
J. W. Verret
Senior Affiliated Scholar
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To speak with a scholar or learn more on this topic, visit our contact page.Currently, there are several compensation initiatives underway, in a bid to curb some perceived excesses on Wall Street. However, even with the best intentions, compensation regulation risks unintended consequences including limiting banks in their competition for top talent. This testimony raises some potential unintended consequences that may result from the proposed compensation initiatives.