The Securities and Exchange Commission has thrown its weight behind a government-supported plan to restrict compensation in the banking sector, voting 3-2 (along party lines, as usual) to propose a rule that would require large financial firms to defer as much as half of bankers’ bonuses and similar incentive-based pay for several years.
The rule proposal largely aligns with a plan first issued by the Federal Deposit Insurance Corp. last month to implement Section 956 of the Dodd-Frank Act. The SEC is the third of seven federal agencies that must approve the proposal jointly before it goes into effect.
