NEW YORK, N.Y. – New York City’s comptroller has announced an agreement with three big banks to expand their policies on reclaiming certain payments to cover misconduct that causes financial or reputational harm.
Comptroller John Liu (loo) said Thursday the city’s pension funds have reached an agreement with Capital One Financial Group, Citigroup and Wells Fargo & Co.
The banks have adopted policies empowering their boards of directors to claw back incentive pay from executives responsible for misconduct that causes serious financial or reputational harm to them.
Previously, the boards could generally claw back only pay from executives who committed intentional or gross misconduct.
The funds include the teachers’ retirement system and the police and fire pension funds.
The funds hold shares in the three banks worth a combined $868 million.