12 U.S.C. § 4518: Prohibition and withholding of executive compensation

The Director shall prohibit the regulated entities from providing compensation to any executive officer of the regulated entity that is not reasonable and comparable with compensation for employment in other similar businesses (including other publicly held financial institutions or major financial services companies) involving similar duties and responsibilities. In making any determination under subsection (a), the Director may take into consideration any factors the Director considers relevant, including any wrongdoing on the part of the executive officer, and such wrongdoing shall include any fraudulent act or omission, breach of trust or fiduciary duty, violation of law, rule, regulation, order, or written agreement, and insider abuse with respect to the regulated entity. The approval of an agreement or contract pursuant to section 1723a(d)(3)(B) of this title or section 1452(h)(2) of this title shall not preclude the Director from making any subsequent determination under subsection (a). In carrying out subsection (a), the Director may require a regulated entity to withhold any payment, transfer, or disbursement of compensation to an executive officer, or to place such compensation in an escrow account, during the review of the reasonableness and comparability of compensation. In carrying out subsection (a), the Director may not prescribe or set a specific level or range of compensation. The Director may prohibit or limit, by regulation or order, any golden parachute payment or indemnification payment. whether there is a reasonable basis to believe that the affiliated party has committed any fraudulent act or omission, breach of trust or fiduciary duty, or insider abuse with regard to the regulated entity that has had a material effect on the financial condition of the regulated entity; whether there is a reasonable basis to believe that the affiliated party is substantially responsible for the insolvency of the regulated entity, the appointment of a conservator or receiver for the regulated entity, or the troubled condition of the regulated entity (as defined in regulations prescribed by the Director); whether there is a reasonable basis to believe that the affiliated party has materially violated any applicable provision of Federal or State law or regulation that has had a material effect on the financial condition of the regulated entity; whether the affiliated party was in a position of managerial or fiduciary responsibility; and the payment reasonably reflects compensation earned over the period of employment; and the compensation involved represents a reasonable payment for services rendered. in contemplation of the insolvency of such regulated entity, or after the commission of an act of insolvency; and preventing the proper application of the assets of the regulated entity to creditors; or preferring one creditor over another. is contingent on the termination of such party’s affiliation with the regulated entity; and the regulated entity became insolvent; any conservator or receiver is appointed for such regulated entity; or the Director determines that the regulated entity is in a troubled condition (as defined in the regulations of the Director). Any payment which would be a golden parachute payment but for the fact that such payment was made before the date referred to in subparagraph (A)(ii) shall be treated as a golden parachute payment if the payment was made in contemplation of the occurrence of an event described in any subclause of such subparagraph. any payment made pursuant to a retirement plan which is qualified (or is intended to be qualified) under section 401 of title 26 , or other nondiscriminatory benefit plan; any payment made pursuant to a bona fide deferred compensation plan or arrangement which the Director determines, by regulation or order, to be permissible; or any payment made by reason of the death or disability of an affiliated party. is assessed a civil money penalty; is removed or prohibited from participating in conduct of the affairs of the regulated entity; or is required to take any affirmative action to correct certain conditions resulting from violations or practices, by order of the Director. any legal or other professional expense incurred in connection with any claim, proceeding, or action; the amount of, and any cost incurred in connection with, any settlement of any claim, proceeding, or action; and the amount of, and any cost incurred in connection with, any judgment or penalty imposed with respect to any claim, proceeding, or action. any direct or indirect transfer of any funds or any asset; and the determination, after such date, of the liability for the payment of such amount; or the liquidation, after such date, of the amount of such payment. No provision of this subsection shall be construed as prohibiting any regulated entity from purchasing any commercial insurance policy or fidelity bond, except that, subject to any requirement described in paragraph (5)(A)(iii), such insurance policy or bond shall not cover any legal or liability expense of the regulated entity which is described in paragraph (5)(A). “This Act may be cited as the ‘Equity in Government Compensation Act of 2015’. The term ‘Director’ means the Director of the Federal Housing Finance Agency. the Federal National Mortgage Association and any affiliate thereof; and the Federal Home Loan Mortgage Corporation and any affiliate thereof. The Director shall suspend the compensation packages approved for 2015 for the chief executive officers of each enterprise and, in lieu of such packages, subject to the limitation under subsection (b), establish the compensation and benefits for each such chief executive officer at the same level in effect for such officer as of January 1, 2015 , and such compensation and benefits may not thereafter be increased. Subsection (a) shall not be construed to affect the applicability of section 16 of the STOCK Act ( 12 U.S.C. 4518a ) to the chief executive officer of each enterprise. Subsection (a) shall only apply to a chief executive officer of an enterprise if the enterprise is in conservatorship or receivership pursuant to section 1367 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4617 ). “Any chief executive officer affected by any provision under section 3 shall not be considered a Federal employee.”