Regulatory Alerts2021-10-21 | 2021-22754Added
Reopening of Comment Period for Listing Standards for Recovery of Erroneously Awarded Compensation
The Securities and Exchange Commission is reopening the comment period for its proposed rule implementing Section 954 of the Dodd-Frank Act, which mandates listing standards for the recovery of erroneously awarded executive compensation. The proposed rule requires national securities exchanges and associations to establish standards compelling listed issuers to adopt and disclose policies for clawing back incentive-based compensation following material accounting restatements. This reopening allows stakeholders to provide feedback on specific issues, including the definition of accounting restatements and the triggers for the three-year lookback period, in light of developments since the original 2015 proposal.
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