finance

Are firms paying more for performance?

We use nationally-representative, monthly data on the total wage bill and employment of around 8,500 firms to investigate fluctuations in the economic importance of performance bonuses in Britain over the past 15 years. We decompose the share of the total economy-wide wage bill that is accounted for by performance-related pay (PRP) into: (i) the shares of employment in the PRP and non-PRP sectors; (ii) the ratio of base pay between the two sectors; and (iii) the gearing of bonus payments to base pay within the PRP sector.

Is UK Banking Reform heading in the right direction?

 

Financial crises are like wars; the winners write the history. In the UK the winners are the Treasury and the Bank of England armed with the ultimate weapon of the public purse. There will be no public enquiry into the cause of the crisis or the performance of our public institutions responsible for financial system stability. All this matters because without learning from past mistakes we are condemned to repeat them.