Regulatory Alerts2022-11-28 | 2022-23757Added
Listing Standards for Recovery of Erroneously Awarded Compensation
The Securities and Exchange Commission adopted final rules implementing Section 954 of the Dodd-Frank Act to require national securities exchanges and associations to establish listing standards for the recovery of erroneously awarded compensation. These standards mandate that listed issuers develop and implement policies to recover incentive-based compensation from current or former executive officers in the event of an accounting restatement caused by material noncompliance with financial reporting requirements. The rules also impose specific disclosure obligations, requiring issuers to file their recovery policies as exhibits to annual reports and provide detailed information regarding any recovery actions taken.
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