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 guidance was issued to assist banking organizations in designing and implementing incentive compensation arrangements that do not encourage imprudent risk-taking and that are consistent with the safety and soundness of a banking organization.
The latest form for Guidance on Sound Incentive Compensation Policies expires 2023-04-30 and can be found here.
Document Name |
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Supporting Statement A |
Approved without change |
Extension without change of a currently approved collection | 2022-12-20 | |
Approved without change |
Extension without change of a currently approved collection | 2020-03-16 | |
Approved without change |
Extension without change of a currently approved collection | 2016-12-02 | |
Approved without change |
Extension without change of a currently approved collection | 2013-09-25 | |
Approved without change |
No material or nonsubstantive change to a currently approved collection | 2011-09-07 | |
Approved without change |
Revision of a currently approved collection | 2010-09-28 | |
Approved without change |
New collection (Request for a new OMB Control Number) | 2010-02-23 |
Federal Enterprise Architecture: Economic Development - Financial Sector Oversight