Asked at a Senate hearing on Tuesday if the rule will be consistent with the statute, which prohibits the SEC from capping awards, Clayton said: “Absolutely.”
He added: “I can tell you that what our proposal was intended to do was to make it clear how we make those decisions at the top end and bottom end of the spectrum. I believe in transparency in how the decisions are made.”
He said the proposal had been mischaracterized by critics, and that the SEC had never envisaged introducing hard caps on rewards.
‘Enforcement 40’ for 2020
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