Tag: Clawbacks

The SEC’s New Clawback Rules Will Change Internal Investigations | King & Spalding

Public companies are swiftly adopting policies regarding “erroneously awarded compensation” by December 1, 2023, to comply with listing standards required by the new SEC Rule 10D-1. These policies will require companies to recover, or “claw back,” incentive-based compensation previously received by current and former Section 16 officers if that compensation was erroneously awarded based on misreported financial information that the…

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Failed Bank Execs Dodge Pay Clawbacks as Tougher Remedies Sought

Last year, Silicon Valley Bank CEO Greg Becker was paid nearly $10 million in total compensation while Signature Bank CEO Joe DePaolo received $8.6 million in total compensation. Their wallets, for now, are safe. The bank bosses fell through the cracks of federal rules for retracting executive pay, say some Washington officials who are pushing for changes. The Federal Deposit…

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Biden Seeks Tougher Penalties on Executives of Failed Banks – Bloomberg

President Joe Biden urged Congress to approve measures enacting tougher punishments on banking executives if mismanagement contributed to their institutions failing, following the recent collapse of three regional banks. Biden said laws on the books currently limit the administration’s ability to hold executives accountable. “When banks fail due to mismanagement and excessive risk taking, it should be easier for regulators…

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SEC Chair Gary Gensler backs controversial clawback rule

A new Securities and Exchange Commission rule that would allow the agency to reclaim bonuses from certain executives should not discourage companies from going public, SEC Chair Gary Gensler said Friday. The “clawback rule” broadens SEC regulators’ authority to recover incentive-based compensation to current and former executives of public companies that was awarded based on errors in their financial statements.…

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Accounting Errors to Cost Executives Their Bonuses Under SEC Rule – WSJ

Regulators will make public companies take back executives’ incentive pay if they find significant errors in financial statements, aiming to improve corporate accountability at a time of rising shareholder discontent over pay practices. The Securities and Exchange Commission voted 3-2 Wednesday to complete the so-called clawback rule, with all Democrats approving and Republicans dissenting. Required by the 2010 Dodd-Frank Act…

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