Summary

Prohibits large banks from paying discretionary bonuses to senior executive officers while the bank is under a formal supervisory notice requiring immediate attention, until the supervising agency is satisfied the issue is resolved. The rule applies to banks and bank holding companies with more than $50 billion in consolidated assets and includes narrow exceptions for the period allowed to submit a remediation plan and for the period after an agency accepts and is overseeing implementation of a remediation plan.

• Blocks discretionary bonuses to senior executives at very large banks when the bank is under a formal, serious supervisory notice until the issue is resolved to the regulator's satisfaction.
• Applies only to banking organizations with more than $50 billion in consolidated assets (bank holding companies, their bank subsidiaries, and standalone banks above the threshold).
• Provides two narrow exceptions: during the window to submit a remediation plan and during the agency-accepted remediation plan's implementation period.
• Incorporates existing statutory definitions from the Federal Deposit Insurance Act for key terms like 'Federal banking agency' and 'bank holding company.'
• Leaves resolution timing and oversight discretion with the appropriate Federal banking agency (no new enforcement body created).
• Does not create new spending or tax changes and does not specify an effective date in the provided text.
• Targets discretionary bonus payments specifically; it does not expressly address base pay, deferred compensation treatment, or other forms of compensation beyond discretionary bonuses.
• Aims to tie executive pay to supervisory compliance and remediation for institutions that present heightened supervisory concerns.