Interagency Guidance on Sound Incentive Compensation Policies

Forms and Documents

Document Name	Status
SPST-0175 (2014).doc Supporting Statement A	2014-01-28
2014-01569.pdf Supplementary Document	2014-01-28
2013-24533.pdf Supplementary Document	2013-12-17

IC Document Collections

IC ID	Document Title	Status
193287	Annual maintenance of policies and procedures Other-Guidance	Modified
193286	Implementation/Modification of policies and procedure Other-Guidance	Removed

ICR Details

OMB Control No: 3064-0175	ICR Reference No: 201309-3064-005
Status: Historical Active	Previous ICR Reference No: 201007-3064-001
Agency/Subagency: FDIC	Agency Tracking No:
Title: Interagency Guidance on Sound Incentive Compensation Policies
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 04/16/2014
	Date Received in OIRA: 01/28/2014
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	04/30/2017	36 Months From Approved	04/30/2014
Responses	4,346	0	9,780
Time Burden (Hours)	173,840	0	594,800
Cost Burden (Dollars)	0	0	0

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Abstract: Incentive compensation practices in the financial services industry contributed to the financial crisis that began in 2007. Bank 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. The Federal banking agencies, including the FDIC, have concluded that it is appropriate and urgent that incentive compensation practices be brought under control through issuance of this guidance.

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Authorizing Statute(s): US Code: 12 USC 1831p-1 Name of Law: Federal Deposit Insurance Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	78 FR 62632	10/28/2013
30-day Notice:	Federal Register Citation:	Citation Date:
	79 FR 4467	01/28/2014
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Annual maintenance of policies and procedures
Implementation/Modification of policies and procedure

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	4,346	9,780	0	0	-5,434	0
Annual Time Burden (Hours)	173,840	594,800	0	0	-420,960	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The burden reduction of 420,960 hours represents an adjustment of -21,760 hours to reflect a decrease in the number of respondents (from 4,890 to 4,346) and an adjustment of -399,200 hours to reflect removal of a one-time implementation burden. This collection has been in place since 2010; therefore, financial institutions should have completed the initial steps of developing the policies and procedures and establishing the internal controls required to comply with the guidance.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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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).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 01/28/2014

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