Regs move forward Dodd-Frank rule on risk considerations in bank exec pay

Federal regulators adopted a notice of proposed rulemaking (NPR) on incentive-based compensation requiring large banks to make their executive compensation arrangements “more sensitive to risk.”

The Federal Deposit Insurance Corporation (FDIC), the Treasury Department’s Office of the Comptroller of the Currency (OCC), and the Federal Housing Finance Agency (FHFA) released the NPR on Monday.

Other agencies, including the National Credit Union Administration and the Securities and Exchange Commission, have indicated similar rulemakings are on their agendas.