Dan Brecher
Counsel
212-286-0747 dbrecher@sh-law.comAuthor: Dan Brecher|July 14, 2015
These SEC clawback rules for executive compensation, which are required under Section 954 of the Dodd Frank Act, are intended to improve the quality of financial reporting and provide enhanced accountability to investors.
“These listing standards will require executive officers to return incentive-based compensation that was not earned,” said SEC Chair Mary Jo White. “The proposed rules would result in increased accountability and greater focus on the quality of financial reporting, which will benefit investors and the markets.”
The rule proposal is more than 100 pages, which does not make for light reading. Below is a brief summary of several key provisions of Proposed Rule 10D-1 under the Securities Exchange Act:
The proposed SEC clawback rules are now available for public comment and may undergo substantial changes before they are finalized. However, businesses should begin to review any corporate documents that may be impacted by the new requirements, including company bylaws, articles, executive compensation agreements, and directors and officers insurance policies.
Counsel
212-286-0747 dbrecher@sh-law.comThese SEC clawback rules for executive compensation, which are required under Section 954 of the Dodd Frank Act, are intended to improve the quality of financial reporting and provide enhanced accountability to investors.
“These listing standards will require executive officers to return incentive-based compensation that was not earned,” said SEC Chair Mary Jo White. “The proposed rules would result in increased accountability and greater focus on the quality of financial reporting, which will benefit investors and the markets.”
The rule proposal is more than 100 pages, which does not make for light reading. Below is a brief summary of several key provisions of Proposed Rule 10D-1 under the Securities Exchange Act:
The proposed SEC clawback rules are now available for public comment and may undergo substantial changes before they are finalized. However, businesses should begin to review any corporate documents that may be impacted by the new requirements, including company bylaws, articles, executive compensation agreements, and directors and officers insurance policies.
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