Regulators are readying to tighten the vise on Wall Street executive compensation, according to a Wall Street Journal report Thursday.
Most banks have adopted a three-year vesting period for executive pay, but the Journal reported that U.S. industry regulators are prepared to extend how long it takes for a senior banker to accrue all of his or her bonus. The change is expected to apply to all banks with more than $50 billion in assets, although smaller institutions managing $1 billion and more would also be subject to separate regulations.
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Regulators reportedly met with President Barack Obama, who urged them to finalize executive compensation rules to reduce reckless behavior on Wall Street.
The new regulations come as the banking industry has seen the overall bonus pool fall coming into 2016, according to a recent report from the Office of the New York State Comptroller.
Six regulatory agencies will weigh in before pay regulations are formalized, the Journal reported, including the Federal Reserve and the Treasury Department's Office of the Comptroller of the Currency, among others
Read the full story about expected regulations in the Wall Street Journal report.
