Question

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

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