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February 2010

Executive Compensation and Market Risks

by Chanont Banternghansa

Some U.S. taxpayers were angry and felt betrayed when financial company executives received large bonuses in the midst of the 2008-09 financial crisis. These executives headed some of the same firms whose risky practices contributed to the crisis—and then later received billions of dollars in government bailouts. Who makes the changes in executive compensation policies and regulations to avoid such risks in the future? Read the February 2010 Newsletter for answers and interesting insights.