Abstract: Incentive compensation
practices in the financial services industry contributed to the
financial crisis that began in 2007. Financial institution
employees too often were rewarded for increasing short-term revenue
or profit without adequate regard to the risks taken to achieve
those results. These practices exacerbated the risks and losses at
a number of banking organizations and resulted in the misalignment
of the interests of employees with the long-term safety and
soundness of their organizations. It is urgent that incentive
compensation practices be brought under control through issuance of
this guidance.
US Code:
12
USC 161 Name of Law: The National Bank Act
OTS is citing a reduction in
the inventory due to a reduction in the number of respondents.
Incentive compensation practices in the financial services industry
contributed to the financial crisis that began in 2007. Financial
institution employees too often were rewarded for increasing
short-term revenue or profit without adequate regard to the risks
taken to achieve those results. These practices exacerbated the
risks and losses at a number of financial institutions and resulted
in the misalignment of the interests of employees with the
long-term safety and soundness of their organizations. It is urgent
that incentive compensation practices be brought under control
through supervisory action. This guidance would also fulfill the
commitment made at the G-20 meeting in September 2009 by President
Obama and the Department of the Treasury to implement the Financial
Stability Boards Compensation Principles.
No
No
No
No
No
Uncollected
Rich Gaffin 2029066181
rich.gaffin@ots.treas.gov
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
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the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.