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The SOX 'Clawback' Provision

In the wake of this renewed interest in executive compensation issues, a recent SEC enforcement action involving Section 304 of the Sarbanes Oxley Act ' also known as the compensation "clawback" provision ' has generated a flurry of attention.

20 minute read January 28, 2010 at 07:15 AM
By
G. William Tysse
The SOX 'Clawback' Provision

Big bonus payouts at troubled financial institutions in the midst of the recent financial crisis have pushed executive compensation issues into the public spotlight. The stimulus bills passed in late 2008 and early 2009 each contained a package of executive compensation restrictions for institutions taking government TARP funds.

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