(Bloomberg) -- The Federal Deposit Insurance Corp. suspended bonuses for about two dozen executives under investigation for misconduct.
The FDIC Board approved eliminating the bonuses if allegations against the officials were substantiated at a meeting earlier this week, a spokesperson for the regulator said Friday, adding that the policy only affects supervisors, managers and executives.
Some officials said the money should be paid and then clawed back if needed, according to the Wall Street Journal, which reported the bonus suspensions earlier. Board member Jonathan McKernan said he sought to add the proposal to the meeting agenda, the newspaper said.
The FDIC struggled with a toxic workplace scandal that put the regulator at the center of a heated political fight. Chairman Martin Gruenberg had faced pressure to leave after a law firm report questioned whether he was the best person to lead an overhaul at the agency. He announced last month that he would step down on Jan. 19.
More than one-third of FDIC survey respondents said they experienced or witnessed sexual and other harassment, an agency watchdog found in a report released Thursday.
The FDIC doesn’t have a policy on bonuses for its broader workforce, which would require union talks, the Wall Street Journal reported.
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