Replacing cash bonuses wish shares is not without merit - in fact a lot of the large firms have been doing this for years, after you reach a certain grade. The problem is that in a big company, your individual performance (or the performance of your desk, department, or even your whole office) may be a mere blip in the context of the whole company. So it's not necessarily such a strong incentive. Trading regulations would provide a better solution, but they would have to be implemented by someone who understands the industry and the metrics (i.e. not politicians).