Shearman & Sterling’s “Corporate Governance & Executive Compensation Survey” (pdf), which we reported on in a recent Society Alert, summarized the state of play on clawback policies maintained by 95 of the 100 largest US public companies that disclose a policy, which is particularly noteworthy in view of the SEC’s pending rulemaking proposal to expand the clawback triggers, as we reported on here. Based on company disclosures, less than one-third of current clawback policies are triggered by a restatement not involving fraud or misconduct (consistent with the SEC proposal); a plurality are triggered by fraud or misconduct either in connection with or absent a restatement, as shown here:
Those companies that disclosed policies most commonly apply them to all of their executive officers.
Access additional resources on our Clawbacks page.
This post first appeared in the weekly Society Alert!