Measures to defer compensation are important, but they have at least one major drawback. It is very difficult to compute the “right” time span between the peaks and troughs of a cycle. For instance, the report proposes to defer (a part of the) compensation for five years.
Although such a period is longer than the minimum deferral period of three years targeted by  10  For evidence on remuneration in the financial sector, see Philippon T. and A. Reshef (2009), “Wages and Human Capital in the U.S. Financial Industry: 1909–2006”, NBER Working Paper No. 14644, January.