Compensation risk analysis: The bank director's role

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In lieu of the recent acknowledgments by federal banking regulatory agencies that incentive compensation practices in the financial industry contributed to the financial crisis, "this article discusses federal banking agencies' recent attempts to address imbalances between incentive pay and risk-taking that could compromise institutional safety and soundness."

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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