The Federal Deposit Insurance Corp. will consider a proposal on Tuesday dealing with pay for bank employees.

The agency provided no further details on the action. The agenda for the meeting of the FDIC's board includes an advance notice of proposed rulemaking on "employee compensation."

Banks are already facing compensation requirements from other authorities, and it was unclear how the FDIC proposal would work in conjunction with those earlier steps.

The largest banking firms have been subject to standards by Kenneth Feinberg, the Treasury Department's pay czar, and the Federal Reserve Board proposed compensation guidelines in October for all bank holding companies.

Under the Fed proposal, companies would be discouraged from pay structures that tie compensation to short-term gains rather than long-term stability.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access