The fifth anniversary of the Dodd-Frank Wall Street Reform and Consumer Protection Act came and went on July 21. A main thrust of Dodd-Frank was the regulation and reform of executive compensation. One of the key provisions was the imposition of a “clawback” rule which requires a publically listed corporation adopt and enforce a policy to recover compensation paid to executive officers in the event that its accounting statements are restated.

As a pre-anniversary gift, the federal Securities and Exchange Commissionissued nearly 200 pages of proposed rules that generally describe how the clawbacks would work. When finalized, these rules will significantly impact both corporate board obligations as well as the terms and compensation of corporate executives.

To read the full text of this article, please visit the Philadelphia Business Journal website.