The structure of Wall Street compensation was criticized on the ground that ________.
A. the current cash bonus system discouraged risk-taking in the financial system
B. the compensation for bankers and traders on Wall Street included a nominal annual bonus
C. the current cash bonus system provided strong incentives for short-term performance but weak incentives for long-term performance
D. deferred incentive compensation with a higher base salary multiplied “material risk” on the bank
Answer:C
The structure of Wall Street compensation was criticized on the ground that ________.
A. the current cash bonus system discouraged risk-taking in the financial system B. the compensation for bankers and traders on Wall Street included a nominal annual bonus C. the current cash bonus system provided strong incentives for short-term performance but weak incentives for long-term performance D. deferred incentive compensation with a higher base salary multiplied “material risk” on the bank