I 
118TH CONGRESS 
1ST SESSION H. R. 4084 
To defer part of the compensation of senior employees of large financial 
institutions (and their subsidiaries), to use such deferred amounts to 
pay any civil or criminal fines that may be levied on the institution 
(or subsidiary), and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 13, 2023 
Ms. TLAIB introduced the following bill; which was referred to the Committee 
on Financial Services 
A BILL 
To defer part of the compensation of senior employees of 
large financial institutions (and their subsidiaries), to 
use such deferred amounts to pay any civil or criminal 
fines that may be levied on the institution (or sub-
sidiary), and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fostering Account-
ability In Remuneration Fund Act of 2023’’ or the ‘‘FAIR 
Fund Act of 2023’’. 
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SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Going back at least to the Wall Street crash 
of 1929, improper pay structures have contributed 
to financial crises in the United States. 
(2) Widespread financial misconduct led to the 
2008 financial crisis, which caused the Great Reces-
sion. Compensation structures incentivized execu-
tives and employees to pursue short-term profits 
without regard for long-term risks to their firms or 
the broader financial system. While culpable employ-
ees and executives continued to receive extraordinary 
pay, homeowners, workers, and communities paid 
the price for their greed and recklessness. 
(3) As seen in the 2023 banking failures, mis-
aligned incentives within the financial sector con-
tinue to fail to hold executives and their senior em-
ployees accountable for their actions. Silicon Valley 
Bank CEO Greg Becker enjoyed millions of dollars 
in incentive-based bonuses, while his bank mis-
managed risks and failed to respond to regulator’s 
warnings. In the hours before the failure of Silicon 
Valley Bank, managers paid themselves millions of 
dollars for what they deemed to be superior perform-
ance. 
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(4) Employees in the financial sector continue 
to walk away with generous bonuses while their 
firms break the law and undermine the stability of 
the financial system. Compensation incentives that 
promote inappropriate risk-taking are a threat to 
economic security. 
SEC. 3. DEFERMENT OF SENIOR EMPLOYEE COMPENSA-
TION. 
(a) DEFERMENT FUND.—Each covered financial in-
stitution and each subsidiary of a covered financial institu-
tion shall establish a deferment fund, which shall— 
(1) only contain compensation deferred under 
subsection (b); and 
(2) only be used as permitted by this section. 
(b) DEFERMENT OF COMPENSATION.—Each covered 
financial institution and each subsidiary of a covered fi-
nancial institution shall— 
(1) each year, defer the compensation of each 
senior employee of the covered financial institution 
or subsidiary in an amount equal to at least 50 per-
cent of the amount that the employee’s total com-
pensation for the year exceeds 7 times the com-
pensation of the median paid employee of the con-
solidated financial institution for the year; 
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(2) place all compensation deferred under para-
graph (1) into the deferment fund of the covered fi-
nancial institution or subsidiary; and 
(3) after the end of the covered deferment pe-
riod, if sufficient funds remain in the deferment 
fund, pay the senior employee the amount of com-
pensation deferred and for which the covered 
deferment period ended. 
(c) USE OF DEFERMENT FUND.— 
(1) USE OF FUND TO PAY FINES.—If a covered 
financial institution or subsidiary of a covered finan-
cial institution is subject to a civil or criminal fine, 
the covered financial institution or subsidiary shall 
first pay such fine out of amounts contained in the 
deferment fund of the covered financial institution 
or subsidiary. 
(2) USE
OF
FUNDS
TO
MAKE
DEPOSITORS 
WHOLE.—If a covered financial institution is a de-
pository institution or a credit union and the deposi-
tory institution or credit union fails, the depository 
institution or credit union shall use amounts in the 
deferment fund of the depository institution or cred-
it union to ensure depositors do not lose any of their 
deposits. All amounts in the deferment fund shall be 
used before any amounts are paid from the Deposit 
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