New Rules for Incentive-Based Compensation

Spring 2016

by  Daniel J. Beck |

“In April, the OCC, Fed, FDIC, FHFA, NCUA, and SEC issued a proposed rule implementing Section 956 of the Dodd-Frank Act which sets restrictions on incentive-based compensation for banks.  The goal of the new rule is to curb short term incentives and excessive risk.  The most onerous restrictions on incentive-based compensation apply to covered institutions with over $50 billion in consolidated assets.  However, smaller institutions will still need to maintain, document, and enforce incentive-based compensation plans which reduce the risk of material financial loss to the institution.”

For more information, please contact Daniel J. Beck at 501-379-1762 or

Note:  The above is an except from the article published in the Spring 2016 issue of The Arkansas Community Banker.  Click the link below to read the actual article.