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Wall Street

U.S. Mulls New Limits on Bank Pay

Half of CEO checks would have to be stock.

U.S. regulators are considering putting new limits on executive pay to discourage excessive risk-taking. According to The Wall Street Journal, the rules under consideration would require executives at big firms to receive at least half of their pay in stock or some other form of deferred payment, rather than up-front cash. The power to do so comes from a clause in the new financial-regulation bill that prohibits bonus plans that encourage “inappropriate risks.” Under Europe’s rules, executives can receive only 20 percent of their bonuses in up-front cash.

Read it at The Wall Street Journal

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