Bank of Scotland with those at non-ailing banks in the UK; the other compares remuneration policies at UBS and Credit … Suisse.• The article analyses how the debate extended internationally to the whole banking sector, with managers' pay …

We propose a model of delegated portfolio management with career concerns. Investors hire fund managers to invest their … capital either in risky bonds or in riskless assets. Some managers have superior information on the default probability …. Looking at the past performance, investors update beliefs on their managers and make firing decisions. This leads to career …

As managers approach retirement, their career horizons become shorter and they might start to behave opportunistically … imply that executive compensation contracts need to be appropriately adjusted when managers approach retirement …