Securities Law Daily provides daily coverage of developments in the regulation of federal, state, and international securities and futures trading, with objective coverage of the...
May 6 — The Securities and Exchange Commission proposed May 6 its version of Dodd-Frank Act incentive compensation prohibitions, designed to curb excessive risk-taking by financial institutions (RIN:3235-AL06).
Under the proposal, firms' executives face at least a four-year wait to receive most bonus pay and would have to give money back if companies experience large losses.
The agency is the last to propose the rule, following the Office of the Comptroller of the Currency, Federal Reserve Board, Federal Deposit Insurance Corporation, Federal Housing Finance Agency and National Credit Union Administration. Commissioner Michael Piwowar voted against the proposal.
The proposal would most strongly affect companies with $250 billion or more in assets.
Companies could claw back bonuses, even if they have already vested, from employees who take inappropriate risks, face enforcement actions or surpass company risk thresholds and sustain losses. Those clawbacks would loom for seven years and could even be sought from employees after they leave the company.
The rule was first proposed in 2011 (42 SLD, 3/3/11).
To contact the reporter on this story: Rob Tricchinelli in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Phyllis Diamond at email@example.com
For the SEC proposal, visit https://www.sec.gov/rules/proposed/2016/34-77776.pdf
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)