After years of anticipation from corporations, institutional investors and better-business advocates, the Securities and Exchange Commission adopted its final clawback rule Wednesday requiring companies to recover erroneously awarded incentive-based compensation after making a financial restatement. The new rule will force companies to craft policies aligned with the SEC’s rule – and that also goes for… Continue reading SEC’s Clawback Rule Could Change Compensation Structures
Tag: Incentive-Based Compensation
SEC Adopts Final Clawback Rule
The Securities & Exchange Commission on Wednesday adopted a new rule requiring companies to recoup “erroneously awarded” incentive-based compensation after filing a restatement to correct inaccurate financials. It also goes a step further than what was initially proposed in 2015 by including both “Big R’” and “little r” restatements as potential clawback triggers under these… Continue reading SEC Adopts Final Clawback Rule
SEC Clawback Rules May be Broader than Boards Remember
The Securities & Exchange Commission is on the verge of adopting proposed rules that would ultimately require companies to claw back incentive compensation from executives after filing a restatement to correct inaccurate financials. However, a memo released in June with the reopening of a comment period on the latest proposal is raising questions among legal… Continue reading SEC Clawback Rules May be Broader than Boards Remember