Large credit unions and banks may face additional restrictions on executive compensation as a result of regulations that will be issued by the NCUA and other financial regulators.
The FDIC today issued a proposal for public comment requiring big banks to keep half of bonuses paid for three years in order to tie them to the employees' long-term performance. The NCUA is scheduled to be briefed on the issue at its Feb. 17 meeting and possibly send the proposed rule out for comment on that day.
The proposal, as sent out for comment today by the FDIC, requires "larger covered financial institutions,"–in the case of those credit unions with assets of $1 billion or more– to report compensation information to their regulators, who will then rule if it is "excessive."
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