The SEC re-proposed regulations that would force senior managers to return incentive pay that’s based on incorrect information included in companies’ financial statements, according to a statement. The rules were required by the 2010 Dodd-Frank Act and SEC Chair
The plan for clawing back inflated pay is one of several regulations stemming from the 2008 financial crisis that federal agencies haven’t finished. Last month, the SEC took up another
“When financial statements are wrong corporate executives shouldn’t receive inflated compensation,”
Specifically, the proposal would force public companies to disclose information about their recovery of excess compensation that was based on incentives. The SEC said that it was taking additional comments on the plan, which was first released in 2015, to take into to account more recent regulatory and market developments.
The agency said it will accept public comments on the proposal for 30 days. The agency’s five commissioners would then need to vote to finalize the plan after taking into account any feedback.
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