12 CFR § 2.4 - Bonus and incentive plans.

---
identifier: "/us/cfr/t12/s2.4"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 2.4 - Bonus and incentive plans."
title_number: 12
title_name: "Banks and Banking"
section_number: "2.4"
section_name: "Bonus and incentive plans."
chapter_name: "COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY"
part_number: "2"
part_name: "SALES OF CREDIT LIFE INSURANCE"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 24 (Seventh), 93a, and 1818(n)."
regulatory_source: "61 FR 51781, Oct. 4, 1996, unless otherwise noted."
cfr_part: "2"
---


# 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.