FAIR Fund Act of 2023

The FAIR Fund Act of 2023 requires large financial institutions (with over $1 billion in assets) to defer 50% of senior employees' annual compensation above 7 times the median employee's pay into a dedicated fund. This fund must first cover civil or criminal fines imposed on the institution, and if the institution fails, it must protect depositors' funds before using federal insurance. Senior employees include those earning over $1 million annually or holding top executive roles at institutions with $50 billion+ in assets. The deferral period ranges from 2 to 8 years, depending on the institution's size, and unrepayable deferred compensation is canceled if the fund lacks sufficient funds.