Senate Hearing Grills Bank Executives on Risk Management and Compensation
Executives from two failed US banks appeared before the Senate Banking Committee to answer questions about their banks' collapse, executive pay, and risk management. Senators criticized the CEOs for receiving millions in compensation, mostly in company stock, before their banks failed. The anger over CEO pay echoes that of the 2008 financial crisis, and clawing back CEO pay has gained bipartisan attention. Four senators have introduced legislation that would give the FDIC authority to claw back any pay made to executives in the five years leading up to a bank's failure.