A recent report in the Wall Street Journal once again brings into sharp relief just how the repercussions of a crisis can play out. The Feb. 17 article, “U.S. Regulators Revive Work on Incentive-pay Rules” (subscription required) outlines how regulators are considering “clawback” provisions in compensation packages for certain employees of Wall Street firms. The idea is to require organizations to structure compensation so that executives would have to return bonuses if they are found to have committed an egregious error or fraud during their tenure.
The 2008 financial crisis had a significant impact on internal audit’s scope of work and influence.…