Executive compensation regulation

As the NCUA again considers regulating exec pay at large credit unions, here are four surefire compensation best practices for all credit unions.

The idea that the U.S. government should have a say in what financial services leaders are paid is not new. But it is often debated.

This discussion was renewed when the National Credit Union Administration approved in July a proposed rule addressing incentive-based compensation arrangements.

This proposed rule responds to provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which requires six regulators of financial institutions, including the NCUA, to issue joint regulations requiring the disclosure and reporting of compensation at certain financial institutions. The proposal approved this summer is essentially the same as the one proposed but not finalized in 2016.

 

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