Reuters: Regulators Seek to Foil Moves to Undermine Pay Reform

Reuters: Regulators Seek to Foil Moves to Undermine Pay Reform

February 8 2011

Regulators began their most forceful attempt to clamp down on bank bonuses since the 2007-2009 financial crisis, and warned firms they would seek to counter attempts to circumvent the reforms.

The Federal Deposit Insurance Corp endorsed on Monday a proposal that executives at the largest financial institutions, such as Bank of America and Goldman Sachs, have half their bonuses deferred for at least three years. The U.S. proposal tackles pay for top executives at financial companies with $50 billion or more in assets, including JPMorgan Chase & Co and Morgan Stanley.

“This proposal is kind of catching up with what companies are doing right now anyway,” said Joseph Sorrentino, managing director at compensation consulting firm Steven Hall & Partners.