The Securities and Exchange Commission on Thursday voted to reinstate a rule that has been unfinished since 2015, which would extend the regulator’s powers to refund executives’ compensation when a company has a compliance breach. You will have to restore your finances.
The SEC said it would seek further public opinion on the rule, which Congress made mandatory after the 2007-2009 financial crisis, with a view to finalizing the rule next year. Go
The SEC proposed a draft in 2015, but failed to finalize it. Efforts to restore the rule are part of broader SEC pressure, now controlled by Democrats. Crackdown on corporate dishonesty By expanding its tools to punish executives.
The agency’s chair, Gary Jensler, said in a statement that reopening the comment period gives Watchdog an opportunity to “strengthen the transparency and quality of corporate financial statements, as well as hold corporate executives accountable to their investors.” “
If finalized, the measure would apply to public companies of all sizes and to any executive officer who makes policy-making decisions and who has received incentive compensation, including stock options, which has dramatically reduced the agency’s current kilos. Expanded the scope of back-to-back options created in 2002.
The SEC can. Use the new power If the company had to pay the relevant executive for “material non-compliance” with the securities laws, it would have to pay more.
This will apply to compensation paid over three years, which leads to recovery.
It will also instruct US stock exchanges to set listing standards, which will require each issuer to develop and implement such a policy.
Five SEC commissioners on Thursday unanimously voted to reopen the referendum period, proposing a tougher interpretation of the rule than the previous 2015 proposal, including “accounting restoration”. The scope should have been reconsidered and a reasonable conclusion reached. Look behind.