Regulatory Alerts2022-06-08
Reopening of Comment Period for Listing Standards for Recovery of Erroneously Awarded Compensation
The Securities and Exchange Commission has reopened the comment period for its proposed rule requiring national securities exchanges and associations to establish listing standards that mandate listed issuers to develop, implement, and disclose policies for recovering erroneously awarded incentive-based compensation. This thirty-day extension allows market participants to evaluate a newly filed staff memorandum detailing increased voluntary policy adoption, projected accounting restatements triggering recovery, and updated cost-benefit analyses. Submissions due by July 14, 2022, will inform the Commission’s final determination on whether issuers must comply with these recovery provisions to maintain their exchange listings.
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