Gregory Mitchell QC suggests who should be held to account for excess remuneration in the credit crunch
There has been a great deal of political and media interest in the issue of bonus payments in the UK and internationally. The chancellor of the exchequer was quoted at the last Labour Party conference as saying: “We need to look as well at the culture of huge bonuses which have distorted the way decisions are made. It’s essential that bonuses don’t result in people being encouraged to take on more and more risk without understanding the damage that might be done, not just to their bank, but to the rest of us in the wider economy.”
Central banks and governments all over the world are bailing out banks, financial institutions and other large companies with loans and working capital. The recipients of government assistance—under new management— are bound to review substantial payments made and the conduct of their former senior executives—in creating the circumstances where rescue was required.
The corporate casualty list is likely to lengthen. Many medium and small sized companies—not perceived as central to the economy—will
