SEC Reopens Comment Period for Proposal on Recovery of Erroneously Awarded Compensation

The SEC has announced that it is reopening the comment period for a proposed rule that would implement Section 954 of the Dodd-Frank Act related to listing standards for recovery of erroneously awarded compensation. The proposal, which was initially issued by the Commission in July 2015, would, among other things, “require national securities exchanges to establish listing standards that would require listed companies to adopt and comply with a compensation recovery policy, often known as a clawback policy.”

The reopening of the comment period is intended to give respondents additional time to review the proposal and prepare their comments. The comment period will be reopened for 30 days after publication of the reopening release in the Federal Register.

For more information, see the fact sheet and staff memorandum on the SEC’s Web site.