US financial regulators restart work on long-delayed compensation rules
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US financial regulators, including the Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, and Federal Housing Finance Agency, have resumed work on a long-delayed rule-writing project to make executive compensation plans at financial firms more sensitive to risk. The proposed rule would bar incentive-based plans that do not account for risks or allow pay to be clawed back or forfeited. The renewed effort is a repeat of a 2016 proposal and aims to adopt new rules prescribed as part of the 2010 Dodd-Frank financial reform law. The proposed rules are aimed at ensuring that leaders of financial institutions are not encouraged to take on excessive risk in a bid to boost their personal compensation. The plan would apply to banks with more than $1 billion in assets, with firms having more than $250 billion in assets facing the strictest requirements. The Bank Policy Institute, which represents larger banks, dismissed the plan as "purely political." The National Credit Union Administration is expected to adopt the proposal in the near future, and the Securities and Exchange Commission also has it on its rule-making agenda. The Federal Reserve has not announced any plans to issue the rule as well. The agencies that issued the proposal said they would be receiving comments on their own websites.

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https://www.investing.com/news/economy/us-financial-regulators-restart-work-on-longdelayed-compensation-rules-3421691