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Big Banks Confront New Bonus Onus
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The FDIC Board approved a draft rule, written jointly with six other regulators, that requires large financial firms with assets over $50 billion to hold onto at least half of top executive's bonuses for three years or longer. The goal is to tie the final payments to the results shown of the employee's trades and other decisions in the three years. FDIC chairwoman Shelia Bair, says this will ensure that safety and soundness practices are followed in large financial firms.
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