Federal regulators adopted a notice of proposed rulemaking (NPR) on incentive-based compensation requiring large banks to make their executive compensation arrangements “more sensitive to risk.”

The Federal Deposit Insurance Corporation (FDIC), the Treasury Department’s Office of the Comptroller of the Currency (OCC), and the Federal Housing Finance Agency (FHFA) released the NPR on Monday.

Aaron Nicodemus is the Editor-in-Chief of Compliance Week. He previously worked as a reporter for Bloomberg Law and as business editor at the Telegram & Gazette in Worcester, Mass. Email: aaron.nicodemus@complianceweek.com LinkedIn:...