The Federal Deposit Insurance Corp. has advanced a proposal to penalize banks that continue risky compensation practices for top executives. The move would reduce fees for firms that adopt steps including awarding bonuses in the form of stock that can’t immediately be cashed in. Companies that don’t adopt changes would face higher fees. On Tuesday, the FDIC board voted to seek public comment on the proposal.
FDIC Calls for Penalizing Risky Compensation
HeadlineJan 13, 2010