3 US regulators propose mandatory clawbacks for incentive-based pay of bank executives under Dodd-Frank Act.

Three US regulators have proposed new rules that would force banks to claw back some pay from executives who take on too much risk. The Federal Deposit Insurance Corp., Federal Housing Finance Agency, and the Office of the Comptroller of the Currency have proposed mandatory clawbacks for certain incentive-based pay for bank executives. The rules, mandated under the 2010 Dodd-Frank Act, aim to align employee incentives with the long-term interests of financial institutions and safeguard them from inappropriate risk-taking incentives.

May 06, 2024
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