{"id":1942046,"date":"2023-06-01T16:41:01","date_gmt":"2023-06-01T20:41:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sens-warren-vance-lead-push-to-crack-down-on-bank-ceo-pay\/"},"modified":"2023-06-01T16:46:01","modified_gmt":"2023-06-01T20:46:01","slug":"sens-warren-vance-lead-push-to-crack-down-on-bank-ceo-pay","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sens-warren-vance-lead-push-to-crack-down-on-bank-ceo-pay\/","title":{"rendered":"Warren and Vance push to limit bank CEO pay."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fsens-warren-vance-lead-push-to-crack-down-on-bank-ceo-pay%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1942046&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Senators Introduce Bill to Claw Back Bank Executives\u2019 Compensation<\/h2>\n<div class=\"post_content\">\n<div class=\"aplayer_app\" data-source=\"https:\/\/vs1.youmaker.com\/assets\/2023\/0601\/867638b8-ee53-4d23-a038-648c61587043\/audio.mp3?length=3959181&#038;duration=330\"><\/div>\n<p>A bipartisan group of senators, led by Sen. Elizabeth Warren (D-Mass.) and Sen. J.D. Vance (R-Ohio), introduced legislation to revive efforts to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/assanges-fiance-if-i-could-speak-to-the-president-i-would-tell-him-julians-liberty-and-the-liberty-of-the-united-states-hang-together\/\" title=\"Assange\u2019s Fianc\u00e9: \u2018If I Could Speak to the President, I Would Tell Him Julian\u2019s Liberty and the Liberty of the United States Hang Together\u2019\">claw back<\/a> big bank executives\u2019 compensation in the event of a failure or resolution.<\/p>\n<p>The senators, 11 of whom are members of the Senate Banking, Housing, and Urban Affairs Committee, introduced the <a href=\"https:\/\/www.warren.senate.gov\/imo\/media\/doc\/SIL23561.pdf\">Failed Bank Executives Clawback Act<\/a>. The bill would allow federal regulators to claw back up to three years of compensation earned by bank CEOs, board members, controlling shareholders, and other integral individuals should the company fail or be resolved.<\/p>\n<p>Under current regulations, the Federal Deposit Insurance Corp. (FDIC) possesses little ability to claw back executives\u2019 pay if their banks crumble and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/pompeo-rips-fauci-over-crazy-china-remarks-naive-beyond-all-possible-imagination-spouts-ccp-propaganda\/\" title=\"Pompeo Rips Fauci Over \u2018Crazy\u2019 China Remarks: \u2018Na\u00efve Beyond All Possible Imagination,\u2019 Spouts CCP Propaganda\">impose enormous costs<\/a> on the banking system and the broader economy.<\/p>\n<p>Warren encouraged Congress to heed President Joe Biden\u2019s request to strengthen the regulatory regime to hold <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senators-rip-former-silicon-valley-bank-ceo-for-executive-payouts-prior-to-banks-collapse\/\" title=\"Senators criticize ex-CEO of Silicon Valley Bank for payouts before bank's downfall.\">failed bank executives<\/a> accountable.<\/p>\n<p>In March, Biden <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2023\/03\/17\/statement-from-the-president-on-holding-senior-bank-executives-accountable\/\">proposed<\/a> allowing Congress to give the FDIC more authority to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/executives-behind-failed-banks-tell-lawmakers-why-the-companies-collapsed\/\" title=\"Failed bank executives explain collapse to lawmakers.\">prohibit bank executives<\/a> of failed companies from working in the industry and fine bank managers if these institutions shut down.<\/p>\n<p>U.S. taxpayers should not face the costs of executives\u2019 \u201cexcessive risk-taking and gross mismanagement,\u201d said Vance.<\/p>\n<p>\u201cThis legislation would right that wrong and ensure that failed bank executives are held accountable for the collapse of their institutions\u2013not the American taxpayer,\u201d he said in a <a href=\"https:\/\/www.warren.senate.gov\/newsroom\/press-releases\/warren-vance-bipartisan-group-of-senators-renew-push-for-legislation-to-claw-back-big-failed-bank-executive-pay\">statement<\/a>.<\/p>\n<blockquote>\n<p>According to Sen. Mike Braun (R-Ind.), bank executives may require an additional incentive to manage their risk better, especially if the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sens-warren-vance-lead-push-to-crack-down-on-bank-ceo-pay\/\" title=\"Warren and Vance push to limit bank CEO pay.\">federal government covers uninsured deposits exceeding<\/a> the $250,000 limit.<\/p>\n<p>\u201cThis bill to claw back bank executive compensation when the FDIC bails out a bank is necessary,\u201d Braun noted.<\/p>\n<\/blockquote>\n<p>At a House Financial Services Committee <a href=\"https:\/\/theepochtimes.com\/cultural-shift-in-federal-reserve-supervision-another-contributor-to-banking-turmoil-house-panel_5269181.html\">hearing<\/a> in May, Federal Reserve Vice Chair for Supervision Michael S. Barr proposed more oversight for bank executive pay.<\/p>\n<p>\u201cOur oversight of incentive compensation for bank managers should also be improved,\u201d Barr told lawmakers. \u201cSVB\u2019s senior management responded to the poor incentives approved by its board of directors. They were not compensated to manage the bank\u2019s risk, and they did not do so effectively.\u201d<\/p>\n<p>During a May Senate Banking hearing, Sen. Sherrod Brown (D-Ohio) accused the executives of boosting stock prices and their own pay \u201cbut didn\u2019t address the glaring risks from customer and industry concentration.<\/p>\n<p>\u201cWhen you put other people\u2019s money and our broader economy at risk, there must be accountability for that level of mismanagement,\u201d the committee chair said.<\/p>\n<figure id=\"attachment_5056152\" style=\"width: 600px\" class=\"wp-caption alignnone\">\n\t\t<a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2023\/02\/14\/GettyImages-1441936123-1-1200x800.jpg\"><br \/>\n\t\t\t<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2023\/02\/14\/GettyImages-1441936123-1-1200x800.jpg\" alt=\"Ohio Republican J.D. Vance (3rd L), who was then a senator-elect, arrives at a meeting with Senate Republicans at the U.S. Capitol in Washington on Nov. 16, 2022.\" width=\"600\" height=\"400\" class=\"size-full wp-image-5056152\" \/><figcaption class=\"wp-caption-text\"><noscript><\/noscript><\/figcaption><\/a><br \/>\n\t<\/figure>\n<p>In 2022, former Silicon Valley Bank CEO Gregory Becker\u2019s total compensation was valued at nearly $10 million. Michael Roffler, the First Republic CEO, earned a $900,000 base salary and a maximum annual incentive bonus package of $2.95 million in 2022. Former Signature CEO Joseph DePaolo made close to $9 million in 2021.<\/p>\n<h3>Overall CEO Pay Fell in 2022<\/h3>\n<p>In recent years, many criticisms have been lobbed against CEO compensation for being too excessive, especially during an inflationary climate.<\/p>\n<p>An Economic Policy Institute (EPI) <a href=\"https:\/\/www.epi.org\/publication\/ceo-pay-in-2020\/\">study<\/a> learned that corporate CEOs earned an average of 399 times an average worker\u2019s pay in 2021.<\/p>\n<p>A May 2022 <a href=\"https:\/\/justcapital.com\/reports\/survey-analysis-americans-say-ceo-pay-is-too-high-companies-should-reduce-income-inequality-by-raising-minimum-wage-to-living-wage-and-capping-ceo-compensation\/\">survey<\/a> by Just Capital found that 73 percent of Americans think CEOs are compensated too much.<\/p>\n<p>But a reduction in CEO pay may be on the horizon. According to a <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-06-01\/ceo-pay-fell-in-2021-for-the-first-time-in-five-years\">Bloomberg report<\/a>, overall CEO pay fell in 2022 for the first time in five years.<\/p>\n<ul>\n<li>The median pay for CEOs of S&#038;P 500 companies fell by 1.6 percent in 2021.<\/li>\n<li>The average CEO-to-worker pay ratio also fell from 299-to-1 in 2020 to 264-to-1 in 2021.<\/li>\n<\/ul>\n<p>Will this trend continue? Only time will tell.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Senators Warren and Vance are leading a bipartisan group of 11 senators to introduce legislation that would revive efforts to claw back big bank executives&#8217; compensation in the event of a failure or resolution.<\/p>\n","protected":false},"author":278,"featured_media":1942047,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[5373,3850,6612,5280,3688,15469,3883],"class_list":["post-1942046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times","tag-bank","tag-ceo","tag-limit","tag-pay","tag-push","tag-vance","tag-warren"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1942046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/278"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1942046"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1942046\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1942047"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1942046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1942046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1942046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}