I enclose a draft
copy of a document I am submitting to the British Financial Services Authority
as part of their enquiries into how bonus schemes may be engineered so as to
prevent the current conditions from occurring again.
Although I respond in
terms of issues as they affect London, little is different in NY, Paris,
Singapore, Hong Kong or any other financial centre, so even if you are
currently elsewhere they will affect you because this stuff is coming to your
town.
If you have any
comments, positive or especially negative, I welcome your feedback, and I will
deliver this to the FSA in time for their 18th of May deadline.
Feel free to forward
this draft to anyone you feel may be interested. I apologise for the occasional
lapses in formatting and style, but as I say this is a draft.
There will be one
more version, which will include a point by point response to the regulatory
consultation. This paper identifies the basis upon which I make my responses
and offers a brief insight into the opaque world of bonus allocation.
I offer sight of more
problems than solutions, which is something that I should have forecast, and if
you have any solutions I am entirely open, just as I am to criticism to any
point raised.
I am of course wholly
self appointed in this task, although some of you have been kind enough to
encourage and help with this work, and if you feel that it is optimal for the
future of your bonus to leave it in the hands of a civil servants, compliance,
risk management, politicians and some headhunter, then you need take no further
action.
I am easily contacted
as
I have a blog at
There is now an
active and informed discussion on the Wilmott.com forums http://www.wilmott.com/messageview.cfm?catid=3&threadid=70549
Where also copies of
later drafts will be placed and note that I have sent this as a Word document
to make your comments easier to ingest into the project.
Dominic
Regards,
Dominic
Dominic Connor
Director
P&D Quantitative
Recruitment
Tel: +44 (0) 786 131 0233