The Federal Deposit Insurance Corp. has proposed a set of tougher rules governing compensation for bank executives but which is not as strict as similar measures in Europe. Among the proposals in the 77-page document: Top bankers would have to defer half their bonuses for up to five years; banks, through a clawback provision, would have to evaluate the performance of bankers during the deferral period and adjust the bonuses accordingly; and banks with more than $50 billion in assets would have to identify key employees that could pose a risk to their stability and monitor their pay.
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