Most Companies Avoid SEC Rule to Analyze Executive Pay Clawback

A new Securities and Exchange Commission rule requires companies to analyze if their accounting errors are big enough to make top brass pay back their bonuses. Few companies have actually done so.

Of the 205 companies that reported accounting corrections in their annual financial statements so far this year, just 29—less than 15%—said they reviewed the error to see if they needed to force a compensation clawback, according to research firm Nonlinear Analytics LLC. Of those that conducted a review, two—payments technology provider NCR Voyix Corp. and fintech company Katapult Holdings Inc.—forced executives to return portions of their bonuses.

Inconsistencies ...