FT.com, August 17, 2009
Sir, Lucian Bebchuk has strongly endorsed the House of Representatives’ decision to regulate the pay structure of the entire financial sector (“Regulate financial pay to reduce risk-taking”, August 4). Financial institutions are special, argues Prof Bebchuk, because they impose costs on taxpayers that they do not internalise. This specialness warrants a broader role for the government in setting chief executive officers’ pay in financial institutions.
