Sentences with phrase «compensation for taking on the risk»

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.