SEC Clawback Plan To Create Enforcement Nightmares

Overview


Andrew Liazos said that if a proposed new SEC rule to force public companies to recoup executive pay after a restatement was adopted as is, “it’s virtually certain that changes will need to be made to all existing clawback policies.” Noting that companies could be delisted from exchanges if they did not comply with the rule, Mr. Liazos continued, “It’s hard to believe something like that would happen, but that hammer is there.”