Clawbacks: Ready, Comply, Execute
By December 1, 2023, virtually all listed companies in the US must have an SEC-compliant clawback policy approved by their board and in operation. Noncompliance risks de-listing by the applicable listing exchange. These no-fault clawback policies, which are triggered by accounting restatements, will be the most far-reaching in existence and complex to enforce. They’ll require close collaboration across finance and legal, while creating significant exposure for the board and investor relations.
Join us as we unpack the new clawback rule and how companies should both prepare and take action in the event of an accounting restatement. We’ll explore:
- Key parameters and scope of the SEC rule
- Types of accounting restatements
- Proxy and annual report disclosure responsibilities
- Case studies and applications, including total shareholder return-based awards
- Practical challenges such as executive non-compliance
- Proactive preparation—the “clawback playbook”
- Implications on award design
Get a refresher on the rule’s basics and insight into applied issues related to the enforcement and calculation challenges that may arise.
CPE Credits: 1.0 (available to live webcast attendees)
Field of Study: Accounting
Program Level: Overview
Additional CPE details