While the financial innovations helped the stock markets grow at a whopping pace in the 1990s and early 2000s, they also brought about a false euphoria and when the bubble burst, the current slowdown was imminent.
The 1980s heralded many changes in the banking and securities exchange sectors the world over. It was an era of deregulations and free flow of currency.Due to changes in policies related to the stock market like bond trading, invention of securitization, interest-rate swaps, and credit-default swaps, bankers could increasingly make huge profits in the stock markets in the past two -three decades. Financial services also benefitted from higher investments made in securities by the increasingly wealthy population, encouraged by the IRA and 401 (k) plan.
With everyone making money, there seemed to be clout surrounding the financial experts, and the growth of private banks was considered synonymous with economic growth. According to Simon Johnson, "the great wealth that the financial sector created and concentrated gave bankers enormous political weight-a weight not seen in the U.S. since the era of J.P. Morgan (the man)."
In the same article, the chart showing the percentage of financial industry's profits as a share of U.S business profits indicates a slow increase fr
The world economy seems to be reeling under one of the worst depressions after the Great Depression of the 1930s.While the crash of Wall Street on Black Tuesday in 1929 was the major cause of The Depression, the causes leading to the current economic crisis seem to be somewhat similar and also related to the Wall Street to some extent.
The poor governmental regulations on banking sector also contributed to this disintegration. It is said that inefficient usage of monetary tools initiated by regulators was one of the main issues associated with the strategic failure of the banking industry, which intensified the scale of bailout.
It is geared at enhancing employee’s performance and organizational effectiveness and consequently competitive advantage in the labor market. The compensation department is part human resource department as it is concerned with employee base pay and benefits administration.
This research article will highlight the impact of CEO’s compensation and promotion based incentives and their related performance. It is difficult task for assessing the executive compensation and evaluating whether they are working in favor of their investors (Antle, 1986).
The study leads to the conclusion that a good financial reward system is very important for the organization as it helps to improve the performance of the employees. The employees’ motivational aspects and the organization's objectives, as well as goals, can be observed as notably associated with a reward system.
The author states that the need for an effective Total rewards program is underscored by firms being solely dependent upon it for growth, stability and overall success. Likewise, the success of a firm that wants to have an effective sales force must use total rewards program, the size of that firm notwithstanding.
In history, incentive compensation has been applied so as to achieve positive financial and performance goals. Finding higher-ranking executives competent enough to communicate the vision of an entity, motivate people and to lead the company towards success can be very challenging.
The executive compensation program supports McDonald's business strategy dubbed as "The Plan to Win." The corporate strategy of winning focuses on people, product, place, price and promotion which would drive system wide sales and profitability as well as support the company's growth strategy for being better and not just bigger (McDonald's Corporation, 2010).
Compensation and Benefits in financial reward system are important for organizations because it helps in systematic organization of tasks and human resources with the purpose of attaining sustainable growth of the organization. Employees’ performance and motivation depends on the financial as well as non-financial rewards provided by the organization
list economic development is developed from some previous economic order which is mainly the sense suggested by Werner Sombart, who was a German sociologist. From the 1950s going forward, the phrase creative destruction has been more freely associated with Joseph Schumpeter who
13 pages (3250 words)Term Paper
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