inappropriate risk-taking

FDIC Approves Proposal for Incentive-Based Compensation

On February 7, the FDIC approved a joint proposed rulemaking to implement Section 956 of the Dodd-Frank Act. Section 956 prohibits incentive-based compensation arrangements that encourage inappropriate risk-taking by covered financial institutions and are deemed to be excessive or that may lead to material losses. Comments must be submitted within 45 days after publication in the Federal Register. FDIC Release. Proposed Rule.