FDIC Seeks Comment on Seeking Pay Clawbacks in Resolutions
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The Federal Deposit Insurance Corp. is seeking comment on a measure that would subject executives and directors to clawbacks of as much as two years’ pay if they are found “substantially responsible” for the failure of a systemically important financial company.
FDIC board members voted 5-0 to propose the rule, part of the agency’s expanded liquidation authority under the Dodd-Frank Act, at a meeting in Washington today. In the same vote, board members laid out a framework for priority payment of creditors and procedures for filing claims in liquidations of large, complex firms, for which the FDIC would serve as receiver.