Unprecedented move on US bank pay

Author: | Published: 1 Jul 2009

US financial institutions will abide by executive compensation guidelines or face binding rules from a united regulatory front.

In an unprecedented move the US Federal Reserve, Treasury, Securities and Exchange Commission (SEC) and House Committee on Financial Services proposed guidelines to executive compensation with the potential to make the guidelines mandatory if banks do not follow them.

“These are best-practice proposals the regulators proposed with the hope that banks will follow them,” said...