WASHINGTON- Federal regulators are proposing that top executives at large financial firms wait at least three years to be paid half of their annual bonuses, a move designed to cut down on risky financial transactions.
The Federal Deposit Insurance Corp. voted Monday on the proposed rule, which goes beyond requirements to in last year's financial regulatory law. The rule seeks to cut down on risk-taking at firms with $50 billion or more in assets by tying bonuses with financial performance over a longer time period.
The law enacted last year simply directed regulators to put in rules to prohibit incentive-based payments that encourage excessive risks.
The FDIC also moved to require larger banks pay a greater portion of fees to insure all U.S. banks, as required under the new law.
(Copyright 2011 by The Associated Press. All Rights Reserved.)