Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Bonus Compensation Clawbacks
In an emerging trend, chief executive officers and chief financial officers of companies settling U.S. Securities and Exchange Commission (SEC) financial reporting cases are personally paying back bonuses and other incentive-based compensation, despite the absence of accusations of personal misconduct or formal SEC actions against them individually.
Already in 2016, several top executives have returned compensation ' from tens of thousands to millions of dollars ' after their companies allegedly engaged in accounting improprieties. These payments reflect increasing acceptance of a new reality where the SEC expects chief executives and chief financial officers to be financially accountable for any misconduct ' fraudulent or not ' resulting in a restatement, even where they are not directly involved. And if those executives do not voluntarily return all incentive-based compensation received in the year following a restated period, they will likely face an SEC enforcement action. Moreover, the SEC is not content to limit reimbursement to top executives. Under a recently proposed rule, numerous other officers will soon be in the clawback crosshairs.
This increased demand for executive compensation clawbacks is particularly significant as the SEC pursues accounting misconduct with a renewed vigor. The heightened focus on financial reporting fraud is reflected in the SEC Division of Enforcement's recent case filings, comprising about 20% of the division's 2015 filings, compared with 13% in 2013.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
The Benefits of Blockchain for e-Discovery and Data Preservation
As businesses across various industries increasingly adopt blockchain, it will become a critical source of discoverable electronically stored information. The potential benefits of blockchain for e-discovery and data preservation are substantial, making it an area of growing interest and importance.