Joint Agencies: Incentive-Based Compensation

On May 6, 2024, the National Credit Union Administration (NCUA), along with other banking regulators and the FHFA (the Agencies) released a notice of proposed rulemaking to implement section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) by jointly issuing regulations or guidelines: (1) prohibiting incentive-based compensation arrangements at covered financial institutions that encourage inappropriate risks by providing excessive compensation or that could lead to material financial loss; and (2) requiring those covered financial institutions to disclose information concerning incentive-based compensation arrangements to the appropriate federal regulator.

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