The Guidance on Sound Incentive Compensation Policies is based on three key principles. These principles provide that incentive compensation arrangements at a banking organization should 1) provide employees incentives that appropriately balance risk and reward, 2) be compatible with effective controls and risk-management, and 3) be supported by strong corporate governance, including active and effective oversight by the organizationâs board of directors. The Board identified certain aspects of the guidance (policies and procedures) that constitute a collection of information. Under Principle 2 of the Guidance (Compatibility with Effective Controls and Risk Management) a banking organization should establish strong controls governing its process for designing, implementing, and monitoring incentive compensation arrangements. Under Principle 3 of the Guidance (Strong Corporate Governance) a banking organizationâs board of directors should review and approve the overall goals and purposes of the firmâs incentive compensation system. The board of directors should provide clear direction to management to ensure that its policies and procedures are carried out in a manner that achieves balance and is consistent with safety and soundness.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
FR4027_20151214_omb.pdf
Ongoing maintenance