Incentive comp rules proposed
Federal financial regulatory agencies are seeking comment on a joint proposed rule to ensure that banks and credit unions design their incentive compensation arrangements to take account of risk. The proposal would require compensation practices reflect three principles: First, that incentive compensation arrangements should appropriately balance risk and financial rewards; second, that they be compatible with effective controls and risk management, and third, that they be supported by strong corporate governance. The agencies are proposing that financial institutions with $1 billion or more in assets be required to have policies . . .