Authors:

  • David Scharfstein
  • John Y. Campbell

Excerpt

Aligning Incentives at Systemically Important Financial Institutions. David Scharfstein, John Campbell, March 25, 2013, Paper. "UBS recently announced it would pay part of the bonuses of 6,500 highly compensated employees with bonds that would be forfeited if the bank does not meet its capital requirements. This memo underscores the benefits of contingent deferred compensation and makes recommendations for how such compensation should be structured at systemically important institutions. We also revise our proposal for contingent convertible bonds, explaining how these hybrid bonds..."  Link verified March 25, 2013