CUNA is seeking comments on the NCUA’s incentive-based compensation proposal by June 8, with comments due to the NCUA by July 22. The rule, proposed at theApril NCUA board meeting, is a joint rule from all federal banking regulators.
CUNA and its members are concerned that the rule gives the agency too much supervisory authority over how credit unions compensate their employees. They also will continue to work with the NCUA to minimize the extent to which the agency will review and supervise incentive compensation programs at credit unions.
CUNA’s Examination and Supervision Subcommittee is also analyzing the proposal, and will share more details as they become available.
For credit unions with assets of $1 billion or more, the rule would:
The rule was first proposed in 2011. It has yet to be published in the Federal Register, but a draft version is available on CUNA’s comment call page.
All federal banking agencies, along with the Federal Housing Finance Agency and Securities and Exchange Commission, are required under the Dodd-Frank Actto issue a joint rule in incentive-based compensation.