Mr Bessell described the relationship between IAG and Swann as a ‘devolved business model’,[1] where Swann was effectively a standalone business.[2] However, the person with ultimate responsibility for Swann was the head of the IAG division in which Swann sat,[3] Read More …
Tag: incentive
2.2 Evidence
2.2.1Mr Stewart’s son Mr Stewart’s son was born with Down syndrome.[1] While Mr Stewart’s son has a degree of independence,[2] he has difficulties understanding whether a product is ‘expensive or cheap’, and whether he has enough money to make purchases.[3] Read More …
2 Culture
I have said more than once in this chapter that an entity’s remuneration and incentive arrangements show what the entity values. Hence, consideration of those arrangements may provide a useful starting point for an examination of the entity’s culture. But Read More …
1.3 Front line remuneration
Much of the evidence the Commission obtained about remuneration of front line staff related to the front line or ‘customer‑facing’ staff in banks. Much of the discussion below is framed with that context in mind. But what is said applies Read More …
1.1 Background
1.1.1Responses to the GFC As the report of the Australian Prudential Regulation Authority (APRA) Prudential Inquiry into CBA noted, ‘remuneration practices at financial institutions globally came under a harsh spotlight during the Global Financial Crisis’.[1] The report said that remuneration Read More …
Introduction
I said in the first chapter of this Report that there can be no doubt that the primary responsibility for misconduct in the financial services industry lies with the entities concerned and those who managed and controlled those entities: their Read More …