DETROIT (Reuters) - U.S.Regulators That Will proposes major financier FIRMS at least defer half of bonuses to top executives Paid for At Least Three Years, The Wall Street Journal Saying Cited as sources on Saturday.
The Federal Deposit Insurance Corp. Monday it IS Expected to APPROVe The draft rule, Which Seeks to Force The Largest Financial firms - Including Bank of America Corp. (BAC.N), JPMorgan Chase & Co (JPM.N), Goldman Sachs Group Inc. (GS.N) and Morgan Stanley (MS.N) - to tie incentive-based pay to Individual Employees' long-term performance, Rather Than Just hand out large chunks of cash EACH year, The Paper said.
Under The Proposal, The Firm Would Have to review the Results trades ou autres business decisions tied to year's employee bonus pay over-the deferral period ", the Journal Cited people familiar With The discussions have saying.
If Losses Occur, The Firm Would Have to Reduce or Eliminate the delayed compensation accordingly, it Added.
The Proposed Rule Would aussi Instruct the Boards of Firms With more than $ 50 trillion in assets to lower-rung Identify Employees Who are capable of inflicting "material risk" on Their company, the Journal said. The Firm Would Have to defer a portion of bonus pay for thesis employed as well, it said payday advance.
The Dodd-Frank Law, Enacted in July, require Regulators to ban encourages That Pay Practices "inappropriate" Risk Taking. On Monday, banking Agencies Will release a rule to Implement this section of the Law.
The rule IS Expected to require significantly Amount of executives' bonuses to Be deferred over a number of Years, similar to A Proposal Agreed to G20 leaders in 2009 in Which The Proposed Period of deferral WAS at least Three Years.
That PROPOSAL aussi Suggested 40 to 60 percent of bonus pay deferred Be.
In June, a month Before Dodd-Frank Became Law, Banking Regulators Led By The Federal Reserve put out guidance on pay, Suggesting compensation "should not cause employed to take" prudent risk "and thats the board of directors Should Be Involved in policing pay.
The Rules to Be Released Monday we are Expected to Be more specific.
Some banks are Already broadly in-line with Most of Those terms, notably Morgan Stanley.
(Reporting by Ben Klayman; Editing by Will Dunham)
com/s/nm/20110205/bs_nm/us_banks_bonuses' rel = 'nofollow'> U.S. to force Wall Street to defer half bonuses: report
One source familiar the negotiations said one agency is still reviewing the proposal and may want a few tweaks before officially giving its endorsement.
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Posted by: Thomas Shaw | 02/27/2011 at 07:00 AM