Marc Trevino Reflects on Incentive Compensation Developments in Bank Director Magazine

November 2012

In the article, “Banks Prepare for a Maze of New Rules on Incentive Pay,” published in the fourth quarter issue of Bank Director, Mr. Trevino contributed to the discussion on evolving bank pay structures stemming from the Dodd-Frank Act regulations. Boards are changing pay incentive policies proposals as the Federal Reserve analyzes pay structures that will impact large and small banks, and shareholders increase pressure on banks to change compensation policies. Policy changes include incorporating risk managers into compensation package analysis and deferring short-term cash bonuses based on performance over a period of two or three years. “Boards aren't used to paying people in this way.” Mr. Trevino said. “I don't remember seeing a time when there was such a radical change in how this is done.”