Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Guidance on Sound Incentive Compensation Practices, 87126-87127 [2016-28903]

Download as PDF 87126 Federal Register / Vol. 81, No. 232 / Friday, December 2, 2016 / Notices Title: Merchant Marine Medals and Awards. OMB Control Number: 2133–0506. Type of Request: Renewal of a Previously Approved Information Collection. Abstract: This information collection of information provides a method of awarding merchant marine medals and decorations to masters, officers, and crew members of U.S. ships in recognition of their service in areas of danger during the operations by the Armed Forces of the United States in World War II, Korea, Vietnam, and Operation Desert Storm and Operations Restore Hope and United Shield. Affected Public: Master, officers and crew members of U.S. ships. Estimated Number of Respondents: 550. Estimated Number of Responses: 550. Annual Estimated Total Annual Burden Hours: 550. Frequency of Response: Annually. Send comments regarding the burden estimate, including suggestions for reducing the burden, to the Office of Management and Budget, Attention: Desk Officer for the Office of the Secretary of Transportation, 725 17th Street NW., Washington, DC 20503. Comments are invited on: whether the proposed collection of information is necessary for the proper performance of the functions of the Department, including whether the information will have practical utility; the accuracy of the Department’s estimate of the burden of the proposed information collection; ways to enhance the quality, utility and clarity of the information to be collected; and ways to minimize the burden of the collection of information on respondents, including the use of automated collection techniques or other forms of information technology. ADDRESSES: asabaliauskas on DSK3SPTVN1PROD with NOTICES Authority: The Paperwork Reduction Act of 1995; 44 U.S.C. Chapter 35, as amended; and 49 CFR 1.93. By order of the Maritime Administrator. Dated: November 21, 2016. Gabriel Chavez, Acting Secretary, Maritime Administration. [FR Doc. 2016–29001 Filed 12–1–16; 8:45 am] BILLING CODE 4910–81–P VerDate Sep<11>2014 17:55 Dec 01, 2016 Jkt 241001 DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency Agency Information Collection Activities: Information Collection Renewal; Submission for OMB Review; Guidance on Sound Incentive Compensation Practices Office of the Comptroller of the Currency (OCC), Treasury. ACTION: Notice and request for comment. AGENCY: The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to comment on the renewal of an information collection as required by the Paperwork Reduction Act of 1995 (PRA). An agency may not conduct or sponsor, and a respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The OCC is soliciting comment concerning renewal of an information collection titled, ‘‘Guidance on Sound Incentive Compensation Practices.’’ The OCC also is giving notice that it has sent the collection to OMB for review. DATES: Written comments should be submitted by January 3, 2017. ADDRESSES: Because paper mail in the Washington, DC area and at the OCC is subject to delay, commenters are encouraged to submit comments by email, if possible. Comments may be sent to: Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, Attention: 1557–0245, 400 7th Street SW., Suite 3E–218, Mail Stop 9W–11, Washington, DC 20219. In addition, comments may be sent by fax to (571) 465–4326 or by electronic mail to prainfo@occ.treas.gov. You may personally inspect and photocopy comments at the OCC, 400 7th Street SW., Washington, DC 20219. For security reasons, the OCC requires that visitors make an appointment to inspect comments. You may do so by calling (202) 649–6700 or, for persons who are deaf or hard of hearing, TTY, (202) 649–5597. Upon arrival, visitors will be required to present valid government-issued photo identification and submit to security screening in order to inspect and photocopy comments. All comments received, including attachments and other supporting materials, are part of the public record and subject to public disclosure. Do not include any information in your SUMMARY: PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 comment or supporting materials that you consider confidential or inappropriate for public disclosure. Additionally, please send a copy of your comments by mail to: OCC Desk Officer, 1557–0245, U.S. Office of Management and Budget, 725 17th Street NW., #10235, Washington, DC 20503 or by email to: oira submission@ omb.eop.gov. FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance Officer, (202) 649–5490 or, for persons who are deaf or hard of hearing, TTY, (202) 649–5597, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 400 7th Street SW., Washington, DC 20219. SUPPLEMENTARY INFORMATION: The OCC requests that OMB extend its approval of the following information collection: Title: Guidance on Sound Incentive Compensation Policies. OMB Number: 1557–0245. Abstract: Under the guidance, each national bank and Federal savings association is required to: (i) For a large national bank or Federal savings association, have policies and procedures that identify and describe the role(s) of the personnel and units authorized to be involved in developing and administering incentive compensation arrangements, identify the source of significant risk-related factors, establish appropriate controls governing these factors to help ensure their reliability, and identify the individual(s) and unit(s) whose approval is necessary for the establishment or modification of incentive compensation arrangements; (ii) create and maintain sufficient documentation to permit an audit of the organization’s processes for developing and administering incentive compensation arrangements; (iii) have any material exceptions or adjustments to the incentive compensation arrangements established for senior executives approved and documented by its board of directors; and (iv) for a large national bank or Federal savings association, have its board of directors receive and review, on an annual or more frequent basis, an assessment by management of the effectiveness of the design and operation of the organization’s incentive compensation system in providing risk-taking incentives that are consistent with the organization’s safety and soundness. Type of Review: Regular. Affected Public: Businesses or other for-profit. Estimated Number of Respondents: 41 large banks; 1,381 small banks. Estimated Burden per Respondent: 520 hours (480 for setup; 40 for yearly E:\FR\FM\02DEN1.SGM 02DEN1 asabaliauskas on DSK3SPTVN1PROD with NOTICES Federal Register / Vol. 81, No. 232 / Friday, December 2, 2016 / Notices maintenance) for large banks; 120 hours (80 for setup; 40 for yearly maintenance) for small banks. Frequency of Response: Annually. Total Annual Burden: 187,040 hours. On July 27, 2016, the OCC issued a 60-day notice soliciting comment on the information collection, 81 FR 49356. One comment was received from an individual. The commenter stated that the burden estimates are low, unrealistic, and unsupported by empirical evidence. The commenter requested that the next notice explain how the burden estimates were calculated and the empirical evidence used in the calculation. The commenter believes that the requirements in the guidance requiring institutions to have policies, procedures, appropriate controls, and sufficient documentation to permit an audit of the incentive compensation arrangements and for the board of directors to review, at least annually, an assessment of the effectiveness of the design and operation of the bank’s incentive compensation system to ensure safety and soundness would likely be met by having the internal audit department examine incentive compensation systems and provide reports to the board audit committee. The commenter estimates that, in institutions with $20 billion or more in total assets, a minimum of four internal auditors customarily spend three or four weeks auditing the effectiveness of the design and operation of incentive compensation systems, resulting in an annual assessment of the effectiveness of the design and operation of the bank’s incentive compensation system at large banks taking a minimum of 640 hours to complete. The commenter also stated that this estimate would not include additional hours needed every year to: (i) Update policies; (ii) revise procedures; (iii) adjust controls; and (iv) document annual incentive payments and document approvals. The commenter believes that, in large, systemically important institutions, internal auditors can spend one to two thousand hours auditing the many incentive compensation plans for compliance with OCC requirements. The commenter also believes that the estimate for ‘‘small banks’’ is also grossly underestimated and that, in a small bank ($50 million in total assets), it would take one person at least one week to assess the effectiveness of the design and operation of the compensation systems and format the results to be submitted to the board of directors. This would be in addition to the 40 hours needed to update written policies and procedures, document VerDate Sep<11>2014 17:55 Dec 01, 2016 Jkt 241001 annual incentive payments, and document approvals. The OCC uses the legal standard for estimating burden hours under the PRA (44 U.S.C. 3502(2)). The term ‘‘burden’’ means time, effort, or financial resources expended by persons to generate, maintain, or provide information to or for a Federal agency, including the resources expended for: (a) Reviewing instructions; (b) acquiring, installing, and utilizing technology and systems; (c) adjusting the existing ways to comply with any previously applicable instructions and requirements; (d) searching data sources; (e) completing and reviewing the collection of information; and (f) transmitting, or otherwise disclosing the information. The OCC believes that its burden estimates are accurate, given that institutions already have the required arrangements in place, including any required systems and procedures. The banking agencies 1 estimated in their original notice 2 that large institutions would spend 480 hours to modify their policies and procedures to monitor incentive compensation. Small institutions would spend 80 hours to establish or modify policies and procedures to monitor incentive compensation. Forty hours would be required to maintain an incentive compensation program. In the experience of the banking agencies, two months is typically required for a large institution to set up a program of this complexity and one business week is required for yearly maintenance. The banking agencies generated these estimates based on their experience with other information collections. Comments continue to be invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the OCC, including whether the information has practical utility; (b) The accuracy of the OCC’s estimate of the information collection burden; (c) Ways to enhance the quality, utility, and clarity of the information to be collected; (d) Ways to minimize the burden of the collection on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) Estimates of capital or startup costs and costs of operation, maintenance, 1 OCC, Board of Governors of the Federal Reserve System, and Federal Deposit Insurance Corporation. 2 75 FR 36395 (June 25, 2010). PO 00000 Frm 00111 Fmt 4703 Sfmt 4703 87127 and purchase of services to provide information. Dated: November 28, 2016. Karen Solomon, Deputy Chief Counsel, Office of the Comptroller of the Currency. [FR Doc. 2016–28903 Filed 12–1–16; 8:45 am] BILLING CODE 4810–33–P DEPARTMENT OF THE TREASURY Internal Revenue Service Proposed Collection; Comment Request for Form 8974 Internal Revenue Service (IRS), Treasury. ACTION: Notice and request for comments. AGENCY: 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 take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104–13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities. SUMMARY: Written comments should be received on or before January 31, 2017 to be assured of consideration. ADDRESSES: Direct all written comments to Tuawana Pinkston, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW., Washington, DC 20224. FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the form and instructions should be directed to Sara Covington, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW., Washington, DC 20224, or through the internet at Sara.L.Covington@irs.gov. SUPPLEMENTARY INFORMATION: Title: Qualified Small Business Payroll Tax Credit for Increasing Research Activities. OMB Number: 1545–XXXX. Form Number: 8974. Abstract: The law allows a qualified small business to elect a portion (up to $250,000) of the research credit against payroll taxes. Section 3111(f) allows the elected amount as a credit for the quarter up to the total amount of the employer’s share of social security tax. Any unused credit can be carried forward to the next quarter. Form 8974 is used by businesses and individuals DATES: E:\FR\FM\02DEN1.SGM 02DEN1

Agencies

[Federal Register Volume 81, Number 232 (Friday, December 2, 2016)]
[Notices]
[Pages 87126-87127]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28903]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Renewal; Submission for OMB Review; Guidance on Sound Incentive 
Compensation Practices

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.

ACTION: Notice and request for comment.

-----------------------------------------------------------------------

SUMMARY: The OCC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites the general public and other Federal 
agencies to comment on the renewal of an information collection as 
required by the Paperwork Reduction Act of 1995 (PRA).
    An agency may not conduct or sponsor, and a respondent is not 
required to respond to, an information collection unless it displays a 
currently valid Office of Management and Budget (OMB) control number.
    The OCC is soliciting comment concerning renewal of an information 
collection titled, ``Guidance on Sound Incentive Compensation 
Practices.'' The OCC also is giving notice that it has sent the 
collection to OMB for review.

DATES: Written comments should be submitted by January 3, 2017.

ADDRESSES: Because paper mail in the Washington, DC area and at the OCC 
is subject to delay, commenters are encouraged to submit comments by 
email, if possible. Comments may be sent to: Legislative and Regulatory 
Activities Division, Office of the Comptroller of the Currency, 
Attention: 1557-0245, 400 7th Street SW., Suite 3E-218, Mail Stop 9W-
11, Washington, DC 20219. In addition, comments may be sent by fax to 
(571) 465-4326 or by electronic mail to prainfo@occ.treas.gov. You may 
personally inspect and photocopy comments at the OCC, 400 7th Street 
SW., Washington, DC 20219. For security reasons, the OCC requires that 
visitors make an appointment to inspect comments. You may do so by 
calling (202) 649-6700 or, for persons who are deaf or hard of hearing, 
TTY, (202) 649-5597. Upon arrival, visitors will be required to present 
valid government-issued photo identification and submit to security 
screening in order to inspect and photocopy comments.
    All comments received, including attachments and other supporting 
materials, are part of the public record and subject to public 
disclosure. Do not include any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.
    Additionally, please send a copy of your comments by mail to: OCC 
Desk Officer, 1557-0245, U.S. Office of Management and Budget, 725 17th 
Street NW., #10235, Washington, DC 20503 or by email to: oira 
submission@omb.eop.gov.

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance 
Officer, (202) 649-5490 or, for persons who are deaf or hard of 
hearing, TTY, (202) 649-5597, Legislative and Regulatory Activities 
Division, Office of the Comptroller of the Currency, 400 7th Street 
SW., Washington, DC 20219.

SUPPLEMENTARY INFORMATION: The OCC requests that OMB extend its 
approval of the following information collection:
    Title: Guidance on Sound Incentive Compensation Policies.
    OMB Number: 1557-0245.
    Abstract: Under the guidance, each national bank and Federal 
savings association is required to: (i) For a large national bank or 
Federal savings association, have policies and procedures that identify 
and describe the role(s) of the personnel and units authorized to be 
involved in developing and administering incentive compensation 
arrangements, identify the source of significant risk-related factors, 
establish appropriate controls governing these factors to help ensure 
their reliability, and identify the individual(s) and unit(s) whose 
approval is necessary for the establishment or modification of 
incentive compensation arrangements; (ii) create and maintain 
sufficient documentation to permit an audit of the organization's 
processes for developing and administering incentive compensation 
arrangements; (iii) have any material exceptions or adjustments to the 
incentive compensation arrangements established for senior executives 
approved and documented by its board of directors; and (iv) for a large 
national bank or Federal savings association, have its board of 
directors receive and review, on an annual or more frequent basis, an 
assessment by management of the effectiveness of the design and 
operation of the organization's incentive compensation system in 
providing risk-taking incentives that are consistent with the 
organization's safety and soundness.
    Type of Review: Regular.
    Affected Public: Businesses or other for-profit.
    Estimated Number of Respondents: 41 large banks; 1,381 small banks.
    Estimated Burden per Respondent: 520 hours (480 for setup; 40 for 
yearly

[[Page 87127]]

maintenance) for large banks; 120 hours (80 for setup; 40 for yearly 
maintenance) for small banks.
    Frequency of Response: Annually.
    Total Annual Burden: 187,040 hours.
    On July 27, 2016, the OCC issued a 60-day notice soliciting comment 
on the information collection, 81 FR 49356. One comment was received 
from an individual.
    The commenter stated that the burden estimates are low, 
unrealistic, and unsupported by empirical evidence. The commenter 
requested that the next notice explain how the burden estimates were 
calculated and the empirical evidence used in the calculation.
    The commenter believes that the requirements in the guidance 
requiring institutions to have policies, procedures, appropriate 
controls, and sufficient documentation to permit an audit of the 
incentive compensation arrangements and for the board of directors to 
review, at least annually, an assessment of the effectiveness of the 
design and operation of the bank's incentive compensation system to 
ensure safety and soundness would likely be met by having the internal 
audit department examine incentive compensation systems and provide 
reports to the board audit committee. The commenter estimates that, in 
institutions with $20 billion or more in total assets, a minimum of 
four internal auditors customarily spend three or four weeks auditing 
the effectiveness of the design and operation of incentive compensation 
systems, resulting in an annual assessment of the effectiveness of the 
design and operation of the bank's incentive compensation system at 
large banks taking a minimum of 640 hours to complete. The commenter 
also stated that this estimate would not include additional hours 
needed every year to: (i) Update policies; (ii) revise procedures; 
(iii) adjust controls; and (iv) document annual incentive payments and 
document approvals. The commenter believes that, in large, systemically 
important institutions, internal auditors can spend one to two thousand 
hours auditing the many incentive compensation plans for compliance 
with OCC requirements.
    The commenter also believes that the estimate for ``small banks'' 
is also grossly underestimated and that, in a small bank ($50 million 
in total assets), it would take one person at least one week to assess 
the effectiveness of the design and operation of the compensation 
systems and format the results to be submitted to the board of 
directors. This would be in addition to the 40 hours needed to update 
written policies and procedures, document annual incentive payments, 
and document approvals.
    The OCC uses the legal standard for estimating burden hours under 
the PRA (44 U.S.C. 3502(2)). The term ``burden'' means time, effort, or 
financial resources expended by persons to generate, maintain, or 
provide information to or for a Federal agency, including the resources 
expended for: (a) Reviewing instructions; (b) acquiring, installing, 
and utilizing technology and systems; (c) adjusting the existing ways 
to comply with any previously applicable instructions and requirements; 
(d) searching data sources; (e) completing and reviewing the collection 
of information; and (f) transmitting, or otherwise disclosing the 
information. The OCC believes that its burden estimates are accurate, 
given that institutions already have the required arrangements in 
place, including any required systems and procedures.
    The banking agencies \1\ estimated in their original notice \2\ 
that large institutions would spend 480 hours to modify their policies 
and procedures to monitor incentive compensation. Small institutions 
would spend 80 hours to establish or modify policies and procedures to 
monitor incentive compensation. Forty hours would be required to 
maintain an incentive compensation program.
---------------------------------------------------------------------------

    \1\ OCC, Board of Governors of the Federal Reserve System, and 
Federal Deposit Insurance Corporation.
    \2\ 75 FR 36395 (June 25, 2010).
---------------------------------------------------------------------------

    In the experience of the banking agencies, two months is typically 
required for a large institution to set up a program of this complexity 
and one business week is required for yearly maintenance. The banking 
agencies generated these estimates based on their experience with other 
information collections.
    Comments continue to be invited on:
    (a) Whether the collection of information is necessary for the 
proper performance of the functions of the OCC, including whether the 
information has practical utility;
    (b) The accuracy of the OCC's estimate of the information 
collection burden;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of the collection on respondents, 
including through the use of automated collection techniques or other 
forms of information technology; and
    (e) Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.

    Dated: November 28, 2016.
Karen Solomon,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2016-28903 Filed 12-1-16; 8:45 am]
BILLING CODE 4810-33-P