For the past 20 years, compensation recoupment or “clawbacks” have been evolving and gaining importance in the corporate governance ecosystem. Modern clawbacks began to take on more significant importance with the Sarbanes Oxley Act (“SOX”), which then evolved into broader designs and arrangements with the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”), and now appear as a newly featured item in a Department of Justice Pilot Program.
In this article, Croke Fairchild Duarte & Beres Partners Andrew Gilbert and Geoffrey Morgan, Senior Counsel Marshall Scott, and Counsel Maggie McTigue provide some historic backdrop to the evolution of the compensation clawback for public companies, followed by a discussion of the details regarding the new Pilot Program that may apply to both public and private companies. The evolution of clawbacks over the past twenty years has significant meaning for executives whose compensation is subject to such recoupment provisions and to the boards of directors responsible for clawback policy development and implementation.
Read the full article on LinkedIn here.