CLARIFICATION OF COMPENSATION STANDARDS.

SEC. 956. CLARIFICATION OF COMPENSATION STANDARDS. Section 39 of the Federal Deposit Insurance Act (as added by section 132(a) of Federal Deposit Insurance Corporation Improvement Act of 1991) (12 U.S.C. 1831s) is amended— (1) by striking subsection (d) and inserting the following new subsection: “(d) Standards to be Prescribed by Regulation.— “(1) In general.—Standards under subsections (a), (b), and (c) shall be prescribed by regulation. Such regulations may not prescribe standards that set a specific level or range 106 STAT. 3896of compensation for directors, officers, or employees of insured depository institutions. “(2) Applicability of other laws.—Paragraph (1) shall not affect the authority of any appropriate Federal banking agency to restrict the level of compensation, including golden parachute payments (as defined in section 18(k)(4)), paid to any director, officer, or employee of an insured depository institution under any other provision of law. “(3) Senior executive officers at undercapitalized institutions.—Paragraph (1) shall not affect the authority of any appropriate Federal banking agency to restrict compensation paid to any senior executive officer of an undercapitalized insured depository institution pursuant to section 38. “(4) Safety and soundness or enforcement actions.— Paragraph (1) shall not be construed as affecting the authority of any appropriate Federal banking agency under any provision of this Act other than this section, or under any other provision of law, to prescribe a specific level or range of compensation for any director, officer, or employee of an insured depository institution— “(A) to preserve the safety and soundness of the institution; or “(B) in connection with any action under section 8 or any order issued by the agency, any agreement between the agency and the institution, or any condition imposed by the agency in connection with the agency’s approval of an application or other request by the institution, which is enforceable under section 8.”; and (2) in subsection (e)(1)(A), by striking “(a), (b), or (c)” and inserting “(a) or (b)”.