SEC Clawback Plan To Create Enforcement Nightmares

By Ed Beeson (July 1, 2015, 9:36 PM EDT) -- In newly unveiled plans to force public companies to recoup executive pay after a restatement, the U.S. Securities and Exchange Commission would force companies to overhaul their current clawback procedures while placing them in a quandary over how to enforce the stiff measures.

Under the SEC plan, an automatic clawback would be triggered whenever an issuer makes a material error in its financial reports that requires a restatement. (Credit: Getty) The long-awaited proposals, which were required under the 2010 Dodd-Frank Act, look to give companies very little wiggle room to avoid having to recoup incentive-based pay to a wide range of...

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