SEC Issues Final Rule on the Recovery of Erroneously Awarded Compensation
SEC Issues Final Rule on the Recovery of Erroneously Awarded
October 26, 2022
The SEC has issued a final
rule, Listing Standards for Recovery of Erroneously Awarded
Compensation, to implement a requirement of Section 954 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act.
Specifically, the final rule “require[s] national securities exchanges to establish
listing standards that would require listed issuers to adopt and comply with a
compensation recovery policy, often known as a clawback policy.” In addition, listed
issuers must “provide disclosure about [clawback] policies and how they are being
The final rule will become effective 60 days after the date of its publication in the
Federal Register. For more information, see the press
sheet, and statements by SEC Chair Gary Gensler and Commissioner Hester Peirce on the SEC’s Web site.