Incentive Compensation Guidance

ICR 201010-1550-005

OMB: 1550-0129

Federal Form Document

Forms and Documents
Document
Name
Status
Supporting Statement A
2010-10-12
IC Document Collections
IC ID
Document
Title
Status
193187 Modified
ICR Details
1550-0129 201010-1550-005
Historical Active 201006-1550-001
TREAS/OTS
Incentive Compensation Guidance
Extension without change of a currently approved collection   No
Regular
Approved without change 02/02/2011
Retrieve Notice of Action (NOA) 12/07/2010
  Inventory as of this Action Requested Previously Approved
02/28/2014 36 Months From Approved 02/28/2011
757 0 765
30,280 0 30,600
0 0 0

Abstract: Incentive compensation practices in the financial services industry contributed to the financial crisis that began in 2007. Financial institution employees too often were rewarded for increasing short-term revenue or profit without adequate regard to the risks taken to achieve those results. These practices exacerbated the risks and losses at a number of banking organizations and resulted in the misalignment of the interests of employees with the long-term safety and soundness of their organizations. It is urgent that incentive compensation practices be brought under control through issuance of this guidance.

US Code: 12 USC 161 Name of Law: The National Bank Act
  
None

Not associated with rulemaking

  75 FR 53023 08/30/2010
75 FR 76079 12/07/2010
No

1
IC Title Form No. Form Name
Guidance on Sound Incentive Compensation Policies

  Total Approved Previously Approved Change Due to New Statute Change Due to Agency Discretion Change Due to Adjustment in Estimate Change Due to Potential Violation of the PRA
Annual Number of Responses 757 765 0 0 -8 0
Annual Time Burden (Hours) 30,280 30,600 0 0 -320 0
Annual Cost Burden (Dollars) 0 0 0 0 0 0
No
No
OTS is citing a reduction in the inventory due to a reduction in the number of respondents. Incentive compensation practices in the financial services industry contributed to the financial crisis that began in 2007. Financial institution employees too often were rewarded for increasing short-term revenue or profit without adequate regard to the risks taken to achieve those results. These practices exacerbated the risks and losses at a number of financial institutions and resulted in the misalignment of the interests of employees with the long-term safety and soundness of their organizations. It is urgent that incentive compensation practices be brought under control through supervisory action. This guidance would also fulfill the commitment made at the G-20 meeting in September 2009 by President Obama and the Department of the Treasury to implement the Financial Stability Board’s Compensation Principles.

No
No
No
No
No
Uncollected
Rich Gaffin 2029066181 [email protected]

  No

On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
 
 
 
 
 
 
 
    (i) Why the information is being collected;
    (ii) Use of information;
    (iii) Burden estimate;
    (iv) Nature of response (voluntary, required for a benefit, or mandatory);
    (v) Nature and extent of confidentiality; and
    (vi) Need to display currently valid OMB control number;
 
 
 
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
12/07/2010


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