Join Us On LinkedIn

In a rare legal move, Hertz seeks to collect millions from its former senior executives, blaming them for an accounting scandal that rocked the company five years ago. The Estero-based car rental giant and its parent company have filed companion lawsuits, pointing their collective finger at four executives. via Hertz sues former executives to recoup millions tied […]
Instead of acting as a check on compensation and accountability, the new law increasingly looks as if it could drive up base salaries — and make executives less aligned with shareholders — or increase incentive pay to even higher levels to account for the risk of any potential clawback. “The clawback requirements as proposed could […]
Like most such efforts, however, the regulators’ new rules are at best only a small step, unlikely to change significantly how most executives operate. But, if nothing else, they will draw attention in the C-suite, so the benefit may be more in the perception of a potential threat through compensation clawbacks than the amount of […]
Hundreds of Bernie Madoff victims no longer face the threat of having their withdrawals from the Ponzi schemer’s accounts clawed back, under a Supreme Court ruling on Monday. The high court let stand an earlier ruling by a New York appeals court that limited the clawbacks to two years prior to when the giant fraud […]
It’s something that almost everyone can agree on: Executives should return compensation earned improperly as a result of accounting shenanigans at their companies. But four years after Congress told the Securities and Exchange Commission to write a rule making it easier to recover unearned pay, that rule remains unwritten. Compensation clawbacks, therefore, are all too […]
Only the [Dodd-Frank] clawback provision remains an idea on paper but not one that has been put into practice. The provision requires SEC rulemaking. No rule proposal has yet to emerge, although the provision is on the SEC’s rulemaking agenda. via Waiting for Dodd-Frank Clawbacks — theRacetotheBottom
The Fifth Third case is interesting because it shows that securities regulators can indeed require executives to pay penalties out of their own pockets when they settle charges of flouting securities laws. But the regulatory action is also notable for what it did not involve: an executive pay clawback under the Sarbanes-Oxley law. Indeed, the […]
SEC seeks clawback from TheStreet’s CFO—but not its CEO–in contrast to the agency’s actions in other cases.
Tyco International and Kozlowski reach settlement on eve of civil trial.
SEC Commissioner Paredes says he is “troubled” that the Dodd-Frank regulatory regime goes too far.