Insights
Alert
David Gordon
Managing Director, Los Angeles, CA
Bindu Culas
Managing Director, New York, NY
SEC Proposes Compensation Clawback Rules – Recovering Compensation Paid to Executive Officers in the Case of Restatements of Financial Statements
Alert | By David Gordon, Bindu Culas
On July 1, 2015, nearly five years after the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Act”) was enacted, the Securities Exchange Commission (“SEC”), in a split vote of three to two, proposed rules to implement Section 954 of the Act. Section 954 requires companies to adopt and enforce a policy (a “recovery policy,” commonly referred to as a clawback policy) providing for repayment from executive officers of incentivebased compensation (“IBC”) when restated financial statements indicate there has been an overpayment.
David GordonManaging Director
Dave Gordon’s practice as an executive compensation consultant stretches back over a decade. He has covered a variety of industries, including extensive experience with financial institutions and utilities. In addition to engagements for his own clients.
Bindu Culas
Managing Director
Bindu Culas has over 20 years of experience advising clients on the US and international legal, tax and regulatory aspects of designing and structuring equity incentive programs, employment agreements, and severance and change-of-control plans.