Controversy Surrounds SEC’s New Proposed Dodd-Frank Executive Compensation Clawback Rules

By | The D&O Diary | July 5, 2015
Controversy Surrounds SEC’s New Proposed Dodd-Frank Executive Compensation Clawback Rules

On July 1, 2015, a divided SEC voted 3-2 to propose rules directing the securities exchanges to adopt standards requiring listed companies to adopt policies requiring the companies’ executive officers to pay back incentive-based compensation in the event the company restates its financials for the year in which the compensation was awarded.