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New Rules Unveiled for Bankers' Pay

Rejects “one size fits all” approach.

The Federal Reserve and United States Treasury unveiled on Thursday a new set of regulations for executive compensation at the nation’s banks and proposals to regulate the payment practices in the private sector more aggressively. Though the Fed is not suggesting maximum caps on salaries nor a ban on any particular payment procedures, it will be reviewing compensation policies at 28 large banks as well as those of a few smaller bank organizations in an effort to ensure there are no excessive risks being taken. The proposal, however, rejects a “one size fits all” approach. The announcement comes as the country awaits an announcement from the "pay czar," Kenneth Feinberg, who will give his final orders for 175 employees at firms receiving considerable government aid. It is expected that Feinberg will cut the average total compensation—including salaries and bonuses—in half.