Financial Regulators Should Do Better Job Rewarding Staff Performance, GAO Says

By Brian Orsak

Financial regulators should do a better job rewarding employee performance, according to a Government Accountability Office report issued June 18. The report, which evaluated the staff management practices of the FDIC, Office of the Comptroller of the Currency, and eight other financial regulators, found that all the agencies had generally improved the ways they linked pay to performance, but noted that evaluation criteria were often unclear. Two agencies-the Securities and Exchange Commission and the Commodity Futures Trading Commission-gave blanket raises to its examiners, auditors and other employees, regardless of performance, the GAO said. The FDIC and the OCC, the primary...