Here’s something Mark Borges shared on his Proxy Disclosure Blog here on CompensationStandards.com on Friday:

[I]f you’re like me, you may not have noticed a pair of bills introduced in Congress in March that would empower the Federal Deposit Insurance Corporation to claw back certain compensation paid to executives and directors of financial corporations subject to the FDIC’s jurisdiction. Generally, the House bill, the “Failed Bank Executives Accountability and Consequences Act” (H.R. 7886) and the Senate bill, the “Failed Bank Executives Clawback Act of 2026” (S. 4050), would require the executives and directors of large banks (as well as certain other persons) to disgorge the compensation they received over a multi-year period (two years for the House and three years for the Senate) preceding their bank’s failure. Citing the failure of Silicon Valley Bank as an example, the measures would hold these individuals financially responsible for some of the costs those failures impose on the rest of the banking system and the U.S. economy.

The applicability of this clawback is limited, and Mark notes that, like many bills introduced, the measures’ prospects are unclear. But clawback requirements remain top of mind for some in Congress (on both sides of the aisle), and even when proposals don’t get any short-term traction, some keep coming back up again and again.

– Meredith Ervine