FHFA Seeks Comment for Incentive Based Compensation
April 29, 2016
The Federal Housing Finance Agency, along with five other agencies, is seeking comment on a proposed rule focused on compensating employees via incentives. It would prohibit incentive-based payment arrangements that the agencies determine encourage inappropriate risks by providing excessive compensation or compensation that could lead to material financial loss. It requires those financial institutions to disclose any information concerning incentive-based pay to the appropriate financial regulator. If finalized, FHFA’s proposed rule would apply to Fannie Mae, Freddie Mac and the Federal Home Loan Banks. It will also replace a proposed rule published by the joint agencies in April 2011.