Financial Regulator Issues Proposed Rule on Incentive Compensation for Financial Institutions | Practical Law
The National Credit Union Administration (NCUA), one of several agencies that is required to prescribe rules implementing Section 956 of the Dodd-Frank Act, issued a proposed rule establishing requirements for incentive compensation practices at large financial institutions. The other agencies are expected to propose the same rule which would prohibit incentive compensation arrangements that could encourage inappropriate risks by providing excessive compensation or that could lead to a material financial loss.