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Financial Institution Letters

May 16, 2016

Incentive-Based Compensation Arrangements

Interagency Notice of Proposed Rulemaking

Printable Format:

FIL-34-2016 - PDF (PDF Help)


On April 26, 2016, the FDIC Board of Directors approved a second joint Notice of Proposed Rulemaking (NPR) to implement Section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The NPR seeks to strengthen the incentive-based compensation practices at covered institutions by better aligning the financial rewards for covered persons with an institution's long-term safety and soundness. Since all participating agencies have approved the NPR, it will soon be published in the Federal Register with a public comment period to close on July 22, 2016.

Agencies: The participating agencies consist of the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Administration, the Federal Housing Finance Agency, and the Securities and Exchange Commission.

Statement of Applicability to Institutions with Total Assets under $1 Billion: This proposed rulemaking does not apply to banks with total assets under $1 billion.


For all covered institutions, the proposed rule would:

For Level 1 and Level 2 institutions, the proposed rule would:


Suggested Routing:

Related Topics:




FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at

To receive FILs electronically, please visit

Paper copies of FDIC FILs may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).