Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 70

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 5
Chunk 70
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.
The
guidance,
which
covers
all
employees
that
have
the
ability
to 
materially affect
the risk
profile of an
organization, either individually
or as
part of
a group,
is based
upon the key
principles that
a 
banking organization’s incentive compensation arrangements should (i) provide incentives that do not encourage risk-taking beyond 
the
organization’s
ability
to
effectively
identify
and
manage
risks,
(ii)
be
compatible
with
effective
internal
controls
and
risk 
management, and (iii)
be supported by
strong corporate governance,
including active and
effective oversight
by the
organization’s 
board of directors. 
The Dodd-Frank Act requires the U.S. financial regulators, including the Federal Reserve Board, the other federal banking 
agencies
and
the
SEC,
to
adopt
rules
prohibiting
incentive-based
payment
arrangements that
encourage
inappropriate
risks
by 
providing excessive
compensation or
that could
lead to
a material
financial loss
at specified
regulated entities
having at
least $1 
billion in total
assets (including Popular,
PNA, BPPR and
PB). The U.S.
financial regulators proposed revised
rules in 2016,
which 
have not been finalized. 

  22 
In October
2022, the SEC
adopted a final
rule requiring securities
exchanges to adopt
rules mandating, in
the case of
a 
restatement, the
recovery or
“clawback” of
excess incentive-based
compensation paid
to current
or former
executive officers
and 
requiring listed
issuers to
disclose any
recovery analysis where
recovery is
triggered by
a restatement.
The excess
compensation 
would be based
on the amount
the executive officer
would have received
had the incentive-based
compensation been determined 
using the restated
financials. The Nasdaq
Stock Market’s listing
standards pursuant to the
SEC’s rule became
effective October 2, 
2023. Popular’s clawback policy adopted in accordance
with these listing standards is included as
Exhibit 97.1. 
Regulation of Broker-Dealers
Our subsidiary,
PS, is a