Sound Incentive Compensation Guidance, 53023-53024 [2010-21490]

Agencies

• DEPARTMENT OF THE TREASURY
• Office of Thrift Supervision
• Thrift Supervision Office

[Federal Register Volume 75, Number 167 (Monday, August 30, 2010)]
[Notices]
[Pages 53023-53024]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-21490]


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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision


Sound Incentive Compensation Guidance

AGENCY: Office of Thrift Supervision (OTS), Treasury.

ACTION: Notice and request for comment.

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SUMMARY: The Department of the Treasury, as part of its continuing 
effort to reduce paperwork and respondent burden, invites the general 
public and other Federal agencies to comment on proposed and continuing 
information collections, as required by the Paperwork Reduction Act of 
1995, 44 U.S.C. 3507. The Office of Thrift Supervision within the 
Department of the Treasury will submit the proposed information 
collection requirement described below to the Office of Management and 
Budget (OMB) for review, as required by the Paperwork Reduction Act. 
Today, OTS is soliciting public comments on its proposal to extend this 
information collection.

DATES: Submit written comments on or before October 29, 2010.

ADDRESSES: Send comments, referring to the collection by title of the 
proposal or by OMB approval number, to Information Collection Comments, 
Chief Counsel's Office, Office of Thrift Supervision, 1700 G Street, 
NW., Washington, DC 20552; send a facsimile transmission to (202) 906-
6518; or send an e-mail to infocollection.comments@ots.treas.gov. OTS 
will post comments and the related index on the OTS Internet Site at 
https://www.ots.treas.gov. In addition, interested persons may inspect 
comments at the Public Reading Room, 1700 G Street, NW., by 
appointment. To make an appointment, call (202) 906-5922, send an e-
mail to public.info@ots.treas.gov">public.info@ots.treas.gov, or send a facsimile transmission to 
(202) 906-7755.

FOR FURTHER INFORMATION CONTACT: You can request additional information 
about this proposed information collection from Richard B. Gaffin (202) 
906-6181, Office of Thrift Supervision, 1700 G Street, NW., Washington, 
DC 20552.

SUPPLEMENTARY INFORMATION: 
    OTS may not conduct or sponsor an information collection, and 
respondents are not required to respond to an information collection, 
unless the information collection displays a currently valid OMB 
control number. As part of the approval process, we invite comments on 
the following information collection.
    Comments should address one or more of the following points:
    a. Whether the proposed collection of information is necessary for 
the proper performance of the functions of OTS;
    b. The accuracy of OTS's estimate of the burden of the proposed 
information collection;
    c. Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    d. Ways to minimize the burden of the information collection on 
respondents, including through the use of information technology.
    We will summarize the comments that we receive and include them in 
the

[[Page 53024]]

OTS request for OMB approval. All comments will become a matter of 
public record. In this notice, OTS is soliciting comments concerning 
the following information collection.
    Title of Proposal: Sound Incentive Compensation Guidance.
    OMB Number: 1550-0129.
    Form Number: N/A.
    Description: The guidance is based on three key principles that are 
designed to ensure that incentive compensation arrangements at a 
financial institution do not encourage employees to take excessive 
risks. These principles provide that incentive compensation 
arrangements should:
     Provide employees incentives that do not encourage 
excessive risk-taking beyond the organization's ability to effectively 
identify and manage risk;
     Be compatible with effective controls and risk management; 
and
     Be supported by strong corporate governance, including 
active and effective oversight by the organization's board of 
directors.
    These principles and the guidance are consistent with the 
Principles for Sound Compensation Practices adopted by the Financial 
Stability Board (FSB) in April 2009, as well as the Implementation 
Standards for those principles issued by the FSB in September 2009.
    This guidance will promote the prompt improvement of incentive 
compensation practices in the banking industry by providing a common 
prudential foundation for incentive compensation arrangements across 
banking organizations and promoting the overall movement of the 
industry towards better practices. Supervisory action could play a 
critical role in addressing misaligned compensation incentives, 
especially where issues of competition may make it difficult for 
individual firms to act alone. Through their actions, supervisors could 
help to better align the interests of managers and other employees with 
organizations' long-term health and reduce concerns that making prudent 
modifications to incentive compensation arrangements might have adverse 
competitive consequences.
    Type of Review: Extension of a currently approved collection.
    Affected Public: Businesses or other for-profit.
    Estimated Number of Respondents: 757.
    Estimated Burden Hours per Responses: 40 hours.
    Estimated Frequency of Response: On occasion.
    Estimated Total Burden: 30,280 hours.

    Dated: August 24, 2010.
Ira L. Mills,
Paperwork Clearance Officer, Office of Chief Counsel, Office of Thrift 
Supervision.
[FR Doc. 2010-21490 Filed 8-27-10; 8:45 am]
BILLING CODE 6720-01-P