[Federal Register Volume 75, Number 234 (Tuesday, December 7, 2010)]
[Notices]
[Page 76079]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-30680]


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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 proposed information collection request (ICR) described 
below has been submitted to the Office of Management and Budget (OMB) 
for review and approval, as required by the Paperwork Reduction Act of 
1995. OTS is soliciting public comments on the proposal.

DATES: Submit written comments on or before January 6, 2011. A copy of 
this ICR, with applicable supporting documentation, can be obtained 
from RegInfo.gov at http://www.reginfo.gov/public/do/PRAMain.

ADDRESSES: Send comments, referring to the collection by title of the 
proposal or by OMB approval number, to OMB and OTS at these addresses: 
Office of Information and Regulatory Affairs, Attention: Desk Officer 
for OTS, U.S. Office of Management and Budget, 725 17th Street, NW., 
Room 10235, Washington, DC 20503, or by fax to (202) 393-6974; and 
Information Collection Comments, Chief Counsel's Office, Office of 
Thrift Supervision, 1700 G Street, NW., Washington, DC 20552, by fax to 
(202) 906-6518, or by e-mail to [email protected]. 
OTS will post comments and the related index on the OTS Internet Site 
at http://www.ots.treas.gov. In addition, interested persons may 
inspect comments at the Public Reading Room, 1700 G Street, NW., 
Washington, DC 20552 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: For further information or to obtain a 
copy of the submission to OMB, please contact Ira L. Mills at, 
[email protected] (202) 906-6531, or facsimile number (202) 906-
6518, Regulations and Legislation Division, Chief Counsel's Office, 
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.
    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: Business or other for-profit.
    Estimated Number of Respondents: 757.
    Estimated Burden Hours per Response: 40 hours.
    Estimated Frequency of Response: On occasion.
    Estimated Total Burden: 30,280 hours.
    Clearance Officer: Ira L. Mills, (202) 906-6531, Office of Thrift 
Supervision, 1700 G Street, NW., Washington, DC 20552.

    Dated: December 1, 2010.
Ira L. Mills,
Paperwork Clearance Officer, Office of Chief Counsel, Office of Thrift 
Supervision.
[FR Doc. 2010-30680 Filed 12-6-10; 8:45 am]
BILLING CODE 6720-01-P