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US SEC Adopts Compensation Clawback Rules

by Starling Insights

Starling Insights Editorial Board

Nov 01, 2022

Observations

Last week, the US Securities and Exchange Commission (SEC) voted to adopt rules requiring companies to recoup bonuses from executives when compliance lapses result in the need to restate their financials. The so-called "clawback rules” — mandated by Congress following the Global Financial Crisis but left unfinished since 2015 — were finalized with a 3-2 vote among SEC Commissioners.

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US SEC Adopts Compensation Clawback Rules

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