Bonuses and bias: the risks of variable pay for compliance professionals
When a compliance professional perceives their pay package may be reduced as a result of their actions, there is a risk of biased decisions.
Image: EtiAmmos/Shutterstock
For many organisations, recent developments mean an accountable person responsible for compliance needs to be a board director. For some firms this might be the CEO, a legal director or a dedicated compliance director.
The individual accountable for compliance needs to feel safe to speak their mind and always be trusted to do this. The board must take on the recommendations presented by the head of compliance but also be in a position to make up their own minds in order to navigate a correct course of action.
There is however a balance: most organisations exist to meet strategic commercial objectives and not solely to be compliant. It i
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda
Related Stories
-
Takeover Panel moves to protect British-based R&D with tougher rules
Regulatory body The Takeover Panel sets out plans to introduce more transparency in pledges made by parties involved in a takeover, a move flagged by the Conservatives in their 2017 manifesto.
-
Ethical turn: the welcome marriage of risk management and ethics
Amoral risk management is no longer welcome, so risk managers are “flirting” with ethics. The relationship may be tumultuous, but it could be a huge and healthy step forward, writes Anette Mikes.
-
Growth in protectionism ‘threatens corporate governance’
Academics warn that protectionism is growing under economic conditions created by the pandemic—and could undermine progress on corporate governance.
