FDIC Suspends Some Bonuses Amid Probes

The Federal Deposit Insurance Corp. has suspended pay bonuses for roughly two dozen executives under investigation for misconduct, a year after a Wall Street Journal investigation revealed a toxic and sexualized workplace culture at the bank regulator.

- GINA HEEB AND REBECCA BALLHAUS

In a closed session last week, the FDIC board unanimously approved a proposal that would also scrap bonuses for executives and managers if allegations against them are substantiated, according to people familiar with the matter.

The vote followed an internal debate about whether to suspend the bonuses, the people said. Some senior officials argued the money should be paid despite the investigations and clawed back, if needed. Republican board member Jonathan McKernan said he pushed to add the proposal to the agenda of last week's board meeting.

The FDIC still lacks a policy on how to handle bonuses for its broader workforce, which would require union negotiations. Pay at the FDIC is unusually high for a government agency.