In the United Kingdom, as in the U.S., huge year-end bonuses for senior financial services executives remain a source of much controversy. There’s obvious merit behind the contention that rewards should be commensurate with performance. But there’s also merit behind the argument that “performance” should reflect a company’s long-term health and not merely what happens in a given year.
One critical determinant of long-term business health isn’t just the number of customers a bank might have but rather the....