In the finance industry, risk compliance has become an important issue after numerous policy violations resulting in significant costs for financial institutions and society as a whole. Little evidence currently exists on the drivers of non-compliant behavior. We run a lab-in-the-field...

The financial services industry typically provides performance pay to staff – a practice that has been linked to misconduct. This lab-in-the-field, real-effort experiment with 318 finance professionals investigates the impact of performance pay on behaviour, in an environment where compliance...

This experimental study investigates how the use of deferred variable remuneration, as opposed to immediate payment of variable remuneration and fixed payment, would affect both misconduct and productivity. Unsurprisingly, the study finds lower rates of misconduct under deferred variable...

The Royal Commission into Misconduct in Banking, Insurance and Financial Services has refocused attention on how remuneration practices influence behaviour. In particular the ‘Balanced Scorecard’, seen by some as a cure for misconduct, has come under scrutiny. In 2018 experimental...