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SEC proposes new clawback requirements

  • SEC (US Securities and Exchange Commission) Image

Jul 01, 2015

The SEC has issued a proposed rule that would require companies to adopt “clawback” polices on executive compensation.

Specifically, the proposal, which is being released in response to a mandate in Section 954 of the Dodd-Frank Act, “would direct the national securities exchanges and national securities associations to establish listing standards that would require each issuer to develop and implement a policy providing for the recovery, under certain circumstances, of incentive-based compensation based on financial information required to be reported under the securities laws that is received by current or former executive officers, and require the disclosure of the policy.” This proposal marks the completion of the SEC’s issuance of proposed executive compensation rules under the Dodd-Frank Act.

Comments on the proposed rule are due by September 14, 2015.

For more information, see Deloitte's related journal entry as well as the proposed rule and press release on the SEC’s Web site.

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