May 31, 2012
Barney Frank Fights Clawback Insurance Policies
– Broc Romanek, CompensationStandards.com
Last year, I was shocked to read Mike Melbinger’s blog that a major insurance broker plans to begin offering “policies that would cover financial firms against both their legal costs in the event that they underwent investigation by the FDIC and any compensation that their executives had to hand back as a result of action by the agency.” Yesterday, as noted in this article, Rep. Barney Frank introduced a bill that would bar executives at financial firms from being able to buy insurance to protect themselves against compensation clawbacks or civil penalties. Here’s analysis of the bill from the D&O Diary Blog.