In such states, Reserve Bank directly initiates supervisory action as per a graded supervisory action framework, which suggests specific and objective course of action for the banks that are in different stages of weakness.
If you check the disclosure journals of U.S. and Japanese financial institutions, you will notice a huge difference between the two countries in terms of the level of compensation for managers. In its recent report, the Financial Stability Board describes a number of attributes required of a desirable scheme and level of compensation.