| A Tale of Two Surprises for a Banking CEO
Bankers are by definition conservative individuals. They don’t care for surprises. A client of ours recently had two surprises; one potentially more troubling than the other.
Near the end of a recent onsite review, the Examiner in Charge (EIC) requested from the CEO a copy of the bank’s job descriptions and compensation plan. This was a surprise to the CEO as this had never been requested in his 40 years of banking.
With last year’s largest regulatory financial institutions reforms and the latest joint proposed rulemaking (February 7) to implement Section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, we suspect this is just the beginning of reforms around incentive compensation and other benefit plans that could be considered excessive and result in inappropriate risk that leads to significant material losses. We also believe that the focus will continue to expand to regional and community banks.
Luckily we can help you avoid compliance risk and improve your bottom line at the same time. Read our latest white paper to see how the CEO’s second surprise created a win-win situation for his bank, and how our help can propel your organization toward the goals of:
- Ensuring incentives balance risk and reward
- Establishing economically sound risk management solutions
- Furthering your efforts to build cultures of ethics and good governance
Learn how we can help.
Download White Paper: A Tale of Two Surprises |
