However, under our economic system, the normal
compensation for taking on risk is to also participate in a share of the profit, if a profit happens to show up.
Not exact matches
Banks should adopt
compensation plans that discourage excessive
risk -
taking and place greater onus
on senior managers
for wrongdoing, the outgoing head of the New York Federal Reserve said.
Based
on this comprehensive review, we concluded that our
compensation program does not encourage excessive
risk taking for the following reasons:
based in part
on their business line performance, and thus presented the potential
for excessive
risk taking, the HRC concluded that the emphasis
on overall Company performance in
compensation decisions, the existence of robust compliance, internal control, disclosure review and reporting programs and clawback policies, the Code of Ethics prohibition
on, and right to discipline employees
for manipulating business goals
for compensation purposes and its prohibitions
on derivative and hedging transactions in Company common stock, and the Company's stock ownership guidelines provided adequate safeguards that would either prevent or discourage excessive
risk taking.
Potenza: As the yield curve flattens, investors get less
compensation for moving further out
on the curve and
taking on more duration
risk.
The HRC noted that any incentive
compensation program that rewards an SEO based in part
on his or her business line performance presents, at least in theory, the potential
for excessive
risk taking.
As they have done so, credit spreads
on these assets have declined, which means that investors are receiving less
compensation for the
risk they are
taking on.
When companies like 24Symbols introduced this model, very few publishers were willing to
take a
risk on a model that may or may not result in due
compensation for their authors and their bottom lines.
At the
risk of
taking sides
on this issue, it would appear that Amazon attempted to work out a system of
compensation for the publishers, although admittedly the terms of those agreements were confidential; nothing has been mentioned so far about how the authors were to be compensated, either.
The extra yield is
compensation for taking on credit
risk when you lend your money to the bond issuer.
The other half of the CAPM formula represents
risk and calculates the amount of
compensation the investor needs
for taking on additional
risk.
This tax arbitrage is effectively National Bank's
compensation for structuring the swap and
taking on the tracking error
risk.»]
Beta, compared with the equity
risk premium, shows the amount of
compensation equity investors need
for taking on additional
risk.
It means that I'm receiving
compensation for the incremental
risk that I'm
taking on by investing in risky assets.
Should a consumer have a low credit score, the financial institution may not lend to him or it may charge a higher interest rate as
compensation for the extra
risk in
taking the person
on as a customer.
Was the excess return
compensation for taking on more
risk?
We don't observe adequate
compensation for taking on credit
risk here, as credit spreads have become enormously depressed due to yield - seeking speculation.
When you tilt the portfolio away from cap weighting, you have a riskier portfolio, and if you get a higher rate of return, it is simply
compensation for taking on more
risk.