--- title: "Meaning & Key Takeaway of: If you want better behavior from bankers…" description: "\"If you want better behavior from bankers, then make their financial incentives more like those in the hedge-fund world - where managers have 'skin in t..." image: "https://sms4smile.com/quotes/i/c9f/david-ignatius-3910_behavior_if-you-want-better-behavior-from-bankers_889842.png" --- # If you want better behavior from bankers, then make their… ![“If you want better behavior from bankers, then make their financial incentives more like those in the hedge-fund world - where managers have 'skin in the game,' and their net worth is tied to their long-term performance.” quote by David Ignatius](https://sms4smile.com/quotes/i/c9f/david-ignatius-3910_behavior_if-you-want-better-behavior-from-bankers_889842.png) [Download](https://sms4smile.com/quotes/i/c9f/david-ignatius-3910_behavior_if-you-want-better-behavior-from-bankers_889842.png) [Open image](https://sms4smile.com/quotes/i/c9f/david-ignatius-3910_behavior_if-you-want-better-behavior-from-bankers_889842.png) > “If you want better behavior from bankers, then make their financial incentives more like those in the hedge-fund world - where managers have 'skin in the game,' and their net worth is tied to their long-term performance.” [David Ignatius](https://sms4smile.com/quotes/author/david-ignatius/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Align bankers' compensation with long‑term outcomes to curb short‑term risk taking. **In simple terms:** Tie pay to lasting performance to improve behavior. Key Takeaway Link incentives to sustainable results. Themes finance incentives risk management Mood analytical concerned Type policy strategic When to use this quote - banking regulation - investment decisions - performance reviews Key Concepts behavioral economics corporate governance Questions to Reflect On - What incentives could align interests? - How to balance risk and reward? A Different Perspective Changing incentives may face political resistance. ★ ★ ★ ★ ★ No ratings yet [Bankers Make](https://sms4smile.com/quotes/about/bankers-make-1137108/) [Behavior](https://sms4smile.com/quotes/about/behavior/) [Behavior Bankers](https://sms4smile.com/quotes/about/behavior-bankers-1137107/) [Customer](https://sms4smile.com/quotes/about/customer/) [Financial Incentives](https://sms4smile.com/quotes/about/financial-incentives-1137105/) [Game](https://sms4smile.com/quotes/about/game/) [Habits](https://sms4smile.com/quotes/about/habits/) [Incentives](https://sms4smile.com/quotes/about/incentives/) [Incentives Like](https://sms4smile.com/quotes/about/incentives-like-1137106/) [Money](https://sms4smile.com/quotes/about/money/) [More](https://sms4smile.com/quotes/about/more/) [Net worth](https://sms4smile.com/quotes/about/net-worth/) [Performance](https://sms4smile.com/quotes/about/performance/) [World](https://sms4smile.com/quotes/about/world/) ## Related quotes > [“Financial incentives don’t reduce errors. Employees must be passionate about eliminating mistakes.”](https://sms4smile.com/quotes/anonymous/financial-incentives-don-t-reduce-errors-employees-must-be-passionate/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [I believe there should be some financial incentives to make the right choice: to make them to buy the right car or not to…](https://sms4smile.com/quotes/fatih-birol/i-believe-there-should-be-some-financial-incentives-to-make-the-right/) [Fatih Birol](https://sms4smile.com/quotes/author/fatih-birol/) > [Many companies believe incentives, financial incentives, are the answer to every problem or issue. But people are motivated by much more than money. In…](https://sms4smile.com/quotes/jeffrey-pfeffer/many-companies-believe-incentives-financial-incentives-are-the-answer/) [Jeffrey Pfeffer](https://sms4smile.com/quotes/author/jeffrey-pfeffer/) > [“Investment bankers make money for a living.”](https://sms4smile.com/quotes/michael-lewis/investment-bankers-make-money-for-a-living/) [Michael Lewis](https://sms4smile.com/quotes/author/michael-lewis/) > [I think we're in the take-the-money-and-run stage of the economy. So the banks may go under, but the bankers, who make the policy, clean…](https://sms4smile.com/quotes/michael-hudson/i-think-we-re-in-the-take-the-money-and-run-stage-of-the-economy-so/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) > [Providing financial incentives for both local communities and national governments to conserve and restore forests also makes sense. It will put an economic value…](https://sms4smile.com/quotes/paul-polman/providing-financial-incentives-for-both-local-communities-and/) [Paul Polman](https://sms4smile.com/quotes/author/paul-polman/) > [“We need to find a way to safeguard humanity whilst still offering short-term financial incentives. For sure, we need innovators in finance more than…](https://sms4smile.com/quotes/david-w-wood/we-need-to-find-a-way-to-safeguard-humanity-whilst-still-offering/) [David W. Wood](https://sms4smile.com/quotes/author/david-w-wood/) > [When your self-worth goes up, your net worth goes up with it.](https://sms4smile.com/quotes/mark-victor-hansen/when-your-self-worth-goes-up-your-net-worth-goes-up-with-it/) [Mark Victor Hansen](https://sms4smile.com/quotes/author/mark-victor-hansen/) > [I'm a strong believer in Intel's stock. That's a large amount of my net worth, and I'm passionate about Intel's future.](https://sms4smile.com/quotes/brian-krzanich/i-m-a-strong-believer-in-intel-s-stock-that-s-a-large-amount-of-my/) [Brian Krzanich](https://sms4smile.com/quotes/author/brian-krzanich/) > [“Leverage on your self-worth and convert it into net worth.”](https://sms4smile.com/quotes/sunday-adelaja/leverage-on-your-self-worth-and-convert-it-into-net-worth/) [Sunday Adelaja](https://sms4smile.com/quotes/author/sunday-adelaja/) > [When you understand that your self-worth is not determined by your net-worth, then you'll have financial freedom](https://sms4smile.com/quotes/suze-orman/when-you-understand-that-your-self-worth-is-not-determined-by-your/) [Suze Orman](https://sms4smile.com/quotes/author/suze-orman/) > [“Your net worth depends on your added value”](https://sms4smile.com/quotes/sunday-adelaja/your-net-worth-depends-on-your-added-value/) [Sunday Adelaja](https://sms4smile.com/quotes/author/sunday-adelaja/) > [Most wealth is inconspicuous. The man down the street driving the nice car and living in the mansion could easily have greater debt and…](https://sms4smile.com/quotes/loral-langemeier/most-wealth-is-inconspicuous-the-man-down-the-street-driving-the-nice/) [Loral Langemeier](https://sms4smile.com/quotes/author/loral-langemeier/) > [In 1985, the top five percent of the households - the wealthiest five percent - had net worth of $8 trillion - which is…](https://sms4smile.com/quotes/david-stockman/in-1985-the-top-five-percent-of-the-households-the-wealthiest-five/) [David Stockman](https://sms4smile.com/quotes/author/david-stockman/) > [I think the sooner that all of us in society stop accepting any type of bullying or harassment from other people - in spite…](https://sms4smile.com/quotes/jason-priestley/i-think-the-sooner-that-all-of-us-in-society-stop-accepting-any-type/) [Jason Priestley](https://sms4smile.com/quotes/author/jason-priestley/) ## More by David Ignatius > [Panic is a natural human response to danger, but it's one that severely compounds the risk.](https://sms4smile.com/quotes/david-ignatius/panic-is-a-natural-human-response-to-danger-but-it-s-one-that/) [David Ignatius](https://sms4smile.com/quotes/author/david-ignatius/) > [Global warming ... may be a plaintiff lawyer's dream. And it's interesting, in a perverse way, to imagine how a jury in 2050 might…](https://sms4smile.com/quotes/david-ignatius/global-warming-may-be-a-plaintiff-lawyer-s-dream-and-it-s-interesting/) [David Ignatius](https://sms4smile.com/quotes/author/david-ignatius/) > [Fear brings out the best in some people and the worst in others. It's a test of character, for individuals and nations.](https://sms4smile.com/quotes/david-ignatius/fear-brings-out-the-best-in-some-people-and-the-worst-in-others-it-s/) [David Ignatius](https://sms4smile.com/quotes/author/david-ignatius/) > [It's very hard to understand just what our strategy is in Syria, frankly, and on Iraq that this is Iraq's war, that the role…](https://sms4smile.com/quotes/david-ignatius/it-s-very-hard-to-understand-just-what-our-strategy-is-in-syria/) [David Ignatius](https://sms4smile.com/quotes/author/david-ignatius/) > [I believe, that there is at least de facto cooperation between United States and Iran, at least in Iraq.](https://sms4smile.com/quotes/david-ignatius/i-believe-that-there-is-at-least-de-facto-cooperation-between-united/) [David Ignatius](https://sms4smile.com/quotes/author/david-ignatius/) > [If you want to hear arguments against deploying a big U.S. ground force in Syria, just ask a general.](https://sms4smile.com/quotes/david-ignatius/if-you-want-to-hear-arguments-against-deploying-a-big-u-s-ground/) [David Ignatius](https://sms4smile.com/quotes/author/david-ignatius/) > [“If you are one in a million in China, you’re one of 1,300 people.”](https://sms4smile.com/quotes/david-ignatius/if-you-are-one-in-a-million-in-china-you-re-one-of-1-300-people/) [David Ignatius](https://sms4smile.com/quotes/author/david-ignatius/) > [2011 is one of those years that historians are likely to look back on as a 'hinge.' And the truth, at once frightening and…](https://sms4smile.com/quotes/david-ignatius/2011-is-one-of-those-years-that-historians-are-likely-to-look-back-on/) [David Ignatius](https://sms4smile.com/quotes/author/david-ignatius/) > [Big mistakes were made in Benghazi, and people should be held accountable. But the brave officers who staff American posts in crisis zones know…](https://sms4smile.com/quotes/david-ignatius/big-mistakes-were-made-in-benghazi-and-people-should-be-held/) [David Ignatius](https://sms4smile.com/quotes/author/david-ignatius/) > [Intelligence services exist to do things that are illegal abroad. They exist to tell lies.](https://sms4smile.com/quotes/david-ignatius/intelligence-services-exist-to-do-things-that-are-illegal-abroad-they/) [David Ignatius](https://sms4smile.com/quotes/author/david-ignatius/) > [Foreign policy is about the execution of ideas as much as their formulation.](https://sms4smile.com/quotes/david-ignatius/foreign-policy-is-about-the-execution-of-ideas-as-much-as-their/) [David Ignatius](https://sms4smile.com/quotes/author/david-ignatius/) > [The best restraint is old-fashioned market discipline, in which financial traders know that they, personally, will lose a ton of money if they take…](https://sms4smile.com/quotes/david-ignatius/the-best-restraint-is-old-fashioned-market-discipline-in-which/) [David Ignatius](https://sms4smile.com/quotes/author/david-ignatius/) > [CIA officers aren't idiots. They knew they were heading into deep water - legally and morally - when they signed up for the interrogation…](https://sms4smile.com/quotes/david-ignatius/cia-officers-aren-t-idiots-they-knew-they-were-heading-into-deep/) [David Ignatius](https://sms4smile.com/quotes/author/david-ignatius/) > [Making economic policy isn't a popularity contest, especially when financial markets are in a panic.](https://sms4smile.com/quotes/david-ignatius/making-economic-policy-isn-t-a-popularity-contest-especially-when/) [David Ignatius](https://sms4smile.com/quotes/author/david-ignatius/) > ['Cyber-security' is one of those hot topics that has launched a thousand seminars and strategy papers without producing much in the way of policy.](https://sms4smile.com/quotes/david-ignatius/cyber-security-is-one-of-those-hot-topics-that-has-launched-a/) [David Ignatius](https://sms4smile.com/quotes/author/david-ignatius/) [Explore all 118 David Ignatius quotes ](https://sms4smile.com/quotes/author/david-ignatius/) ## More Behavior quotes > [The vision of the left, full of envy and resentment, takes its worst toll on those at the bottom - whether black or white…](https://sms4smile.com/quotes/thomas-sowell/the-vision-of-the-left-full-of-envy-and-resentment-takes-its-worst/) [Thomas Sowell](https://sms4smile.com/quotes/author/thomas-sowell/) > [By making conscious choices in our behavior and where we focus our attention, we can transform our experience of our body, decrease our biological…](https://sms4smile.com/quotes/deepak-chopra/by-making-conscious-choices-in-our-behavior-and-where-we-focus-our/) [Deepak Chopra](https://sms4smile.com/quotes/author/deepak-chopra/) > [As you begin changing your thinking, start immediately to change your behaviour. Begin to act the part of the person you would like to…](https://sms4smile.com/quotes/anonymous/as-you-begin-changing-your-thinking-start-immediately-to-change-your/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [“I now know that deep within the human concept is something dark, selfish, and completely willing to do whatever is necessary to support the…](https://sms4smile.com/quotes/melissa-west/i-now-know-that-deep-within-the-human-concept-is-something-dark/) [Melissa West](https://sms4smile.com/quotes/author/melissa-west/) > [“We are endowed with genes which code out our reaction to beavers and otters, maybe our reaction to each other as well. We are…](https://sms4smile.com/quotes/lewis-thomas/we-are-endowed-with-genes-which-code-out-our-reaction-to-beavers-and/) [Lewis Thomas](https://sms4smile.com/quotes/author/lewis-thomas/) > [The number of poor, and poorly prepared, students who succeed in college and beyond undercuts the simplistic notion that economic or educational disadvantage is…](https://sms4smile.com/quotes/roland-merullo/the-number-of-poor-and-poorly-prepared-students-who-succeed-in/) [Roland Merullo](https://sms4smile.com/quotes/author/roland-merullo/) > [To behave creatively in art means behavior with skill; and skill comes from discipline, not derangement. The artist who knows the rules -and proportion…](https://sms4smile.com/quotes/burne-hogarth/to-behave-creatively-in-art-means-behavior-with-skill-and-skill-comes/) [Burne Hogarth](https://sms4smile.com/quotes/author/burne-hogarth/) > [You don't put milk in chamomile tea - that's disgusting behavior! That's not right.](https://sms4smile.com/quotes/laura-fraser/you-don-t-put-milk-in-chamomile-tea-that-s-disgusting-behavior-that-s/) [Laura Fraser](https://sms4smile.com/quotes/author/laura-fraser/) > [The laws of thermodynamics, as empirically determined, express the approximate and probable behavior of systems of a great number of particles, or, more precisely,…](https://sms4smile.com/quotes/j-willard-gibbs/the-laws-of-thermodynamics-as-empirically-determined-express-the/) [J. Willard Gibbs](https://sms4smile.com/quotes/author/j-willard-gibbs/) > [I started with the belief that every person who came to the laboratory was free to accept or to reject the dictates of authority.…](https://sms4smile.com/quotes/stanley-milgram/i-started-with-the-belief-that-every-person-who-came-to-the/) [Stanley Milgram](https://sms4smile.com/quotes/author/stanley-milgram/) > [The tipping point is that magic moment when an idea, trend, or social behavior crosses a threshold, tips, and spreads like wildfire.](https://sms4smile.com/quotes/malcolm-gladwell/the-tipping-point-is-that-magic-moment-when-an-idea-trend-or-social/) [Malcolm Gladwell](https://sms4smile.com/quotes/author/malcolm-gladwell/) > [I think we've told a lot of lies about human behavior through film.](https://sms4smile.com/quotes/patricia-arquette/i-think-we-ve-told-a-lot-of-lies-about-human-behavior-through-film/) [Patricia Arquette](https://sms4smile.com/quotes/author/patricia-arquette/) > [The strongest rebellion may be expressed in quiet, undramatic behavior.](https://sms4smile.com/quotes/benjamin-spock/the-strongest-rebellion-may-be-expressed-in-quiet-undramatic-behavior/) [Benjamin Spock](https://sms4smile.com/quotes/author/benjamin-spock/) > [The behavior of any bureaucratic organization can best be understood by assuming that it is controlled by a secret cabal of its enemies.](https://sms4smile.com/quotes/robert-conquest/the-behavior-of-any-bureaucratic-organization-can-best-be-understood/) [Robert Conquest](https://sms4smile.com/quotes/author/robert-conquest/) > [If you want good behavior, don't pay on a commission basis. Our judges aren't paid so much a case. We keep them pretty well…](https://sms4smile.com/quotes/charlie-munger/if-you-want-good-behavior-don-t-pay-on-a-commission-basis-our-judges/) [Charlie Munger](https://sms4smile.com/quotes/author/charlie-munger/) [Browse all 4,218 Behavior quotes ](https://sms4smile.com/quotes/about/behavior/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "If you want better behavior from bankers, then make their financial incentives more like those in the hedge-fund world - where managers have 'skin in the game,' and their net worth is tied to their long-term performance.", "creator": { "@type": "Person", "name": "David Ignatius" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/david-ignatius/if-you-want-better-behavior-from-bankers-then-make-their-financial/", "about": { "@type": "Thing", "name": "Behavior" }, "@id": "https://sms4smile.com/quotes/david-ignatius/if-you-want-better-behavior-from-bankers-then-make-their-financial/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/c9f/david-ignatius-3910_behavior_if-you-want-better-behavior-from-bankers_889842.png", "contentUrl": "https://sms4smile.com/quotes/i/c9f/david-ignatius-3910_behavior_if-you-want-better-behavior-from-bankers_889842.png", "url": "https://sms4smile.com/quotes/i/c9f/david-ignatius-3910_behavior_if-you-want-better-behavior-from-bankers_889842.png", "width": 1080, "height": 1080, "caption": "“If you want better behavior from bankers, then make their financial incentives more like those in the…” — David Ignatius", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "David Ignatius", "item": "https://sms4smile.com/quotes/author/david-ignatius/" }, { "@type": "ListItem", "position": 4, "name": "If you want better behavior from...", "item": "https://sms4smile.com/quotes/david-ignatius/if-you-want-better-behavior-from-bankers-then-make-their-financial/" } ], "@id": "https://sms4smile.com/quotes/david-ignatius/if-you-want-better-behavior-from-bankers-then-make-their-financial/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```