The FDIC Board approved a joint proposed rulemaking to implement Section 956 of Dodd-Frank prohibiting incentive-based compensation arrangements that encourage inappropriate risk taking by covered financial institutions and are deemed to be excessive, or that may lead to material losses. For institutions with at least $50 billion in total consolidated assets, the rule would require that at least 50% of incentive-based payments be deferred for a minimum of three years for designated executives. Incentive-based compensation arrangements for covered persons that would encourage inappropriate risks or expose the institution to inappropriate risks by providing compensation that could lead to a material financial loss would be prohibited. Comments will be accepted for 45 days after publication in the Federal Register.