---
kind: "section"
citation: "12 C.F.R. § 2.4"
title: "12"
number: "2.4"
heading: "Bonus and incentive plans."
url: "https://uscodex.org/cfr/12/2.4"
---

# §2.4. Bonus and incentive plans.


A bank employee or officer may participate in a bonus or incentive plan based on the sale of credit life insurance if payments to the employee or officer in any one year do not exceed the greater of:

- (a) Five percent of the recipient's annual salary; or
- (b) **Five percent of the average salary of all loan officers participating in the plan.**

## Notes

### Authority

Authority: 12 U.S.C. 24 (Seventh), 93a, and 1818(n).

### Source

Source: 61 FR 51781, Oct. 4, 1996, unless otherwise noted.