Join Troutman Pepper Partners Chris Willis and Sheri Adler as they dive into the new requirement for publicly traded companies (including financial services companies) to adopt a clawback policy requiring the recoupment of erroneously awarded incentive compensation by December 1, 2023. Chris and Sheri discuss many facets of the rules and what steps companies can take to ensure compliance, including:
- Which companies are subject to the new rules?
- Who must the policy cover?
- What compensation is covered?
- What amount is recoverable?
- What triggers a clawback?
- May the compensation committee exercise discretion as to whether or not to pursue a clawback?
- Can a company indemnify an executive for the loss of erroneously awarded compensation?
- What is the consequence for a company’s failure to comply?
- What are some practical considerations for getting into compliance?
