Professor Philip Lane:

This is a fundamental part of the new philosophy of regulation everywhere. The kind of debate about short-termism versus long-termism is not settled. However, in finance, there is a deep conflict where an entity can make profits today by taking excessive risk or mistreating customers and the losses are down the line when an individual has retired and living at the seaside or something. I will ask Mr. Sibley to explain the clawback principle in compensation schemes.