In the Margins

Regulators unveil new rules to curb Wall Street pay

April 21, 2016

By The Wall Street Journal

Regulators have proposed a requirement that the nation’s largest banks hold back executives’ bonus pay for four years, extending by a year the common industry practice on Wall Street incentive payouts. The plan also would give firms up to seven years to “claw back” bonuses if it turns out an executive’s actions hurt the institution. The proposal has been in the works for five years and is jointly written by six agencies; it would overhaul how pay is crafted for a wide swath of high-level employees at banks, investment advisers, broker-dealers and credit unions, as well as top managers at mortgage-finance companies Fannie Mae and Freddie Mac. Read the original story from The Wall Street Journal.

 

 

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