On June 8th, the SEC announced that is reopening the comment period for the July 2015 proposed amendments and new rules to implement Section 954 of Dodd-Frank concerning listing standards for recovering erroneously awarded compensation. In response to the original proposal, the SEC received numerous comments, and considering the regulatory and market developments since 2015, the SEC is providing an opportunity for the public to offer additional feedback on the 2015 proposal. The reopening also allows for questions newly raised to be addressed.
Under the originally proposed rules, the following updates will be implemented:
requirements for national securities exchanges to establish listing standards that would mandate listed companies to adopt and comply with a compensation recovery policy (also known as a clawback policy)
requirements to develop an outline of the incentive-based compensation that is subject to recovery
requirements that each listed company provides disclosure about its recovery of excess incentive-based compensation and file its compensation recovery policy
Interested parties may comment on all aspects of the 2015 proposal during the comment period, which will be open for 30 days after publication in the Federal Register. For more information on the comment period reopening and ways to submit feedback, refer to the proposing release available on sec.gov.