May 23, 2011
This is to express my support for changing Wall Street pay practices that were a major cause of the economic collapse of 2008 by using a *safety index* for incentive compensation instead of a profit index.
Currently, most bankers receive stock options, which rewards short-term profit-generation. Instead, a bank’s bond price, which measures the overall ability of the bank to repay its own debt, should be used. Other measures of bank stability such as the spread on credit default swaps also can be used to ensure that bankers are not rewarded for making banks fail.
Thank you for considering this comment,