FAIR Fund Act of 2023

The FAIR Fund Act of 2023 requires large financial institutions ($1 billion+ in assets) to defer 50% of senior employees' annual compensation exceeding seven times the median employee's pay into a dedicated fund. This deferred compensation must first cover fines for misconduct or protect depositors if the institution fails - prioritizing these uses over general bank funds. The deferral period ranges from 2 to 8 years, depending on the institution's size, and ensures delayed pay is repaid to employees only if funds remain after addressing fines or depositor losses. The bill directly affects top earners at major banks, brokerages, and credit unions, aiming to align executive pay with long-term stability rather than short-term risk-taking.