Report suggests US regulators considering proposal to restrict bonuses for Wall Street executives

US banking regulators are reportedly considering a proposal that would require big banks to defer executive compensation and claw back more of their bonuses in case of financial losses. According to the Wall Street Journal, the plan is being revived and could be introduced in the coming days by six agencies, including the Federal Deposit Insurance Corp (FDIC) and the Office of the Comptroller of the Currency (OCC).

The Federal Reserve is not involved in drafting the proposal, as stated in the report. This move comes in response to concerns about executive pay on Wall Street, with critics calling for more stringent regulations and clawback provisions to hold executives accountable for financial losses.

The proposal aims to address the issue of excessive risk-taking and ensure that executives are not rewarded for short-term gains that may ultimately harm the financial stability of banks. By deferring compensation and increasing clawback provisions, regulators hope to align the interests of executives with the long-term success of the banks they oversee.

If the proposal is approved, it could have significant implications for executive compensation practices in the banking industry. It remains to be seen how banks and executives will respond to these potential changes and how they will impact the broader financial sector. Stay tuned for more updates as this story develops.