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ARTICLE · 25 AUGUST 2017

A Cautionary Tale For Compensation Committee Members

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The Office of the Comptroller of the Currency recently took an enforcement action in the form of a consent order against a bank director that serves as a cautionary tale for the banking industry.

United StatesFinance and Banking
David Freeman, Jr.
David Freeman, Jr.
Robert Azarow
Robert Azarow
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Kathleen Wechter
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Michael Mancusi
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Eleni Zanias
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The Office of the Comptroller of the Currency (OCC) recently took an enforcement action in the form of a consent order against a bank director that serves as a cautionary tale for the banking industry. The consent order, agreed to by and between the OCC and a director and former senior vice president of a small national bank in Wisconsin, reminds bank boards of directors of their fiduciary duties with respect to executive compensation and the consequences of breaching those duties. In particular, this action puts board compensation committee members on notice that they may be found liable for unsafe or unsound executive compensation practices that occur on their watch.

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