ALEXANDRIA, Va. -- Credit unions with assets $1 billion or more would have to file an annual report on incentive-based compensation programs and couldn't have any such programs that encourage exposure to inappropriate risks.
That's a key part of the proposed rule the NCUA Board voted today to send out for comment.
Those credit unions couldn't have programs that might cause material loss and have to document their compliance procedures.
Credit unions with assets of $10 billion or more would have to meet all those requirements and defer at least 50% of their incentive-based compensation for at least three years and adjust payments to reflect subsequent losses caused by the decisions.
The rules, which will be subject to a 45-day comment period, must be issued by all financial regulators as a result of the financial overhaul bill passed last year.
To read the proposed rule, go to: