US regulators mulling bid to limit bonuses for Wall Street execs, WSJ reports

By Thomson Reuters Apr 19, 2024 | 12:51 PM

(Reuters) – U.S. banking regulators are planning to revive a proposal that would require big banks to defer executive compensation and claw back more of their bonuses if losses pile up, the Wall Street Journal reported on Friday.

Six agencies, including the Federal Deposit Insurance Corp (FDIC) and the Office of the Comptroller of the Currency (OCC), are involved in developing the plan, the report said, adding that the measure could be proposed in the coming days.

The Federal Reserve is not involved in drafting the proposal, the report said.

Executive pay on Wall Street has long been a hot-button issue, with critics pushing for restrictions and arguing for more stringent clawback provisions.

The FDIC declined to comment on the report, while the OCC and the Fed did not immediately respond to Reuters requests for comment.

(Reporting by Niket Nishant in Bengaluru; Editing by Devika Syamnath)