Why do it in one year when you can do three?

The Federal Deposit Insurance Corp.’s five-member board unanimously approved a draft rule, written jointly with six other regulators, that would require large financial firms to hold on to at least half of top executives’ bonuses for three years or longer. The aim is to tie the final payments to the outcomes of the employees’ trades and other decisions over time. The deferral requirement, if approved, would apply to firms with $50 billion or more in assets, such as Morgan Stanley, Goldman Sachs Group Inc., and mortgage-finance giants Fannie Mae and Freddie Mac. Smaller firms with at least $1 billion in assets would be subject to less-prescriptive rules but would still have to satisfy regulators that top officials’ incentive-based compensation balances risk and reward. [WSJ]

Comments (4)

  1. Posted by BlahBlahBlah | February 7, 2011 at 11:04 PM

    I am seeing a rise of Pay Day Loan folks for Wall St. Need cash now? It is your money use it when you need it. If you get laid off or change jobs we will take your liver – you owe to yourself, you owe to your family!

  2. Posted by JGWentworth | February 7, 2011 at 11:12 PM

    Sounds like someone needs to call J.G. Wentworth.

  3. Posted by GorillaTrader | February 8, 2011 at 12:02 AM

    “Its Money Honey and I need to lose weight now!”

  4. Posted by Guy yelling out a window | February 8, 2011 at 1:24 AM

    I want my money and I want it now!

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