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Email On October 22, 2009 the Board of Governors of the Federal Reserve System (“Board”) released proposed Guidance on Sound Incentive Compensation Policies (the “Compensation Guidance”) applicable to certain banking organizations as described below. The proposal puts forth three key risk management principles that banking organizations must observe in developing and implementing incentive compensation arrangements. https://www.cadwalader.com/resources/clients-friends-memos/federal-reserve-board-proposes-guidance-on-incentive-compensation