Financial regulators have proposed new rules limiting the incentive pay of employees and other service providers at financial institutions.

The Dodd-Frank Act of 2010 prohibits incentive compensation that encourages inappropriate risks or provides excessive compensation, and the National Credit Union Administration, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Securities and Exchange Commission have proposed new restrictions on how financial institutions pay their employees and other service providers.