UK: Remuneration and the role of regulators - comments from the Bank of England Governor

The speech given last week by the Governor of the Bank of England, Mark Carney, at the World Economic Forum's annual meeting, has attracted much attention, particularly in respect of interest rate policy. But there was much else of interest in the speech, particularly with regard to financial regulation and the role of regulators. With regard to remuneration, Mr Carney stated: "... while regulators ... can determine the appropriate split of remuneration between fixed and variable elements to limit risks to financial stability, only society, not regulators, can determine whether the absolute and relative levels of compensation are acceptable". A copy of the speech is available here (pdf).