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HR 9490

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.

119th Congress Introduced by Al Green and 3 co-sponsors

The bill would defer a portion of senior financial executives’ compensation and use those funds to pay civil or criminal fines levied against their institutions.

Sponsor introductory remarks on measure. (CR H4251)
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WeVote Research Nonpartisan
Bill Summary · HR 9490

Summary of HR 9490 (Session 119)

Purpose and intent

HR 9490 proposes to defer a portion of the compensation paid to senior employees of large financial institutions (and their subsidiaries). The deferral would be structured so that the deferred amounts could be used to pay any civil or criminal fines that may be levied against the institution (or its subsidiary). The underlying aim appears to align executive compensation with potential regulatory penalties, creating a mechanism to help fund fines from compensation already earned by top executives.

Key provisions and changes

  • Deferral of compensation: The bill directs that a portion of compensation for senior executives at large financial institutions and their subsidiaries be deferred rather than paid out immediately.
  • Funding fines with deferred amounts: The deferred compensation could be used to satisfy civil or criminal fines levied against the institution or its subsidiary.
  • Scope of applicability: Applies to senior employees of large financial institutions and their subsidiaries (the bill’s text would specify thresholds for what constitutes a “large” institution and which subsidiaries are included).
  • Use of funds: The deferred amounts, once payable as fines, would be deployed to satisfy monetary penalties assessed by regulatory or judicial authorities.
  • Administration and timelines: The bill would set rules governing how deferral is implemented, maintained, and released (including governance, timing, and any exceptions or withdrawal provisions). It may address how this interacts with existing compensation agreements, employee rights, and tax considerations.
  • Oversight and enforcement: Provisions likely establish reporting, auditing, and enforcement mechanisms to ensure proper administration of the deferral and application toward fines.

Who would be affected

  • Targeted individuals: Senior executives and other high-earning employees at large financial institutions and their subsidiaries.
  • Institutions: Large banks and certain affiliated financial entities that meet the bill’s size/threshold criteria.
  • Regulators and the judiciary: Implicitly involved through the use of funds to satisfy civil or criminal penalties levied against institutions.

Procedural and timeline aspects

  • Introduction and sponsor details: Introduced in the House on June 25, 2026. Co-sponsors include Al Green, Stephen Lynch, Summer Lee, and Rashida Tlaib.
  • Referral: Referred to the House Committee on Financial Services on the same date.
  • Next steps (typical, not guaranteed): Committee hearings, potential amendments, and a floor vote could follow, depending on committee action and leadership decisions.

Potential impact and considerations

  • Penalties funding mechanism: By tying fines to executives’ deferred compensation, the bill introduces a potential private funding mechanism for regulatory penalties, which could affect how penalties are perceived by institutions and investors.
  • Executive compensation dynamics: The proposal could influence incentives for senior financial officers and may affect compensation planning, retention strategies, and labor negotiations within large institutions.
  • Legal and regulatory implications: Implementation would require careful alignment with employment law, tax rules, contract law, and existing regulatory frameworks for sanctioning fines.
  • Economic and market effects: Depending on how broadly “large financial institutions” is defined, the measure could impact a subset of the financial sector, potentially affecting risk-taking behavior and capital allocation.

Note: The summary reflects information available from the bill’s introduction and referral actions. The exact text would provide precise definitions, thresholds, and administrative details that determine the bill’s full scope and impact.

Compiled from official sources — confirm details with the bill’s official record.

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