SEC Approves Compliance Date Related to Clawback Requirements

The SEC recently approved amendments filed by the NYSE and Nasdaq that revise the date by which listed companies must comply with the requirements of the SEC’s October 2022 final rule on policies for the recovery of erroneously awarded compensation (i.e., clawback policies). Under the approved amendments, the effective date of the new clawback requirements is October 2, 2023, and the official compliance date for public companies is now December 1, 2023 (i.e., 60 days after the effective date), which is the date by which public companies must have a clawback policy that complies with the requirements of the respective exchange.