SEC Reopens Comment Period for Proposals on Listing Standards for Recovery of Erroneously Awarded Compensation

The SEC has announced that it is reopening the comment period for its proposed rule Listing Standards for Recovery of Erroneously Awarded Compensation (released in 2015). The proposal, which was issued to address a mandate of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, “would direct the national securities exchanges and national securities associations to establish listing standards that would require each issuer to develop and implement a policy providing for the recovery, under certain circumstances, of incentive-based compensation based on financial information required to be reported under the securities laws that is received by current or former executive officers, and require disclosure of the policy.”

The reopening of the comment period is intended to give respondents the opportunity to provide additional feedback in view of developments that have occurred since the proposal’s initial release.

Comments are due 30 days after the date of the proposal’s publication in the Federal Register. For more information, see the press release, fact sheet, and statement by SEC Chair Gary Gensler on the SEC’s Web site.