The turmoil in the global banking sector has, in many cases, highlighted a breakdown of the alignment between the salary and bonus packages of executives and traders and their creation of long-term shareholder value.
There are signs that powerful institutional investors are reacting to the crisis by increasingly opposing salary plans they do not believe are in shareholders' interests.
Across Europe, the level of dissent against proposals for share incentive plans was 9 per cent in the first half of 2008, according to research by RiskMetrics, which defines dissent as votes against a motion and active abstentions.
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