Reuters reports that U.S. banking regulators are considering reintroducing a proposal aimed at compelling large banks to defer executive compensation and implement stricter clawback provisions in case of significant losses. The Wall Street Journal states that six agencies, including the Federal Deposit Insurance Corp (FDIC) and the Office of the Comptroller of the Currency (OCC), are collaborating on this initiative, with the proposal potentially forthcoming in the near future.
Notably, the Federal Reserve is not participating in drafting the proposal. The issue of executive pay in the financial sector has been a contentious topic, with advocates calling for tighter regulations and enhanced clawback provisions.
While the FDIC refrained from commenting on the matter, the OCC and the Fed have yet to respond to Reuters’ requests for comment.
