The Advisors' Blog

– Liz Dunshee

Broc’s blogged about how we probably won’t see SEC rules on clawbacks anytime soon – it’s not a high priority for the SEC since companies are doing a decent job adopting, disclosing & exercising clawbacks on their own. In fact, some call misconduct clawbacks “directors’ best friends,” since they can save boards from no-vote campaigns in the midst of a scandal.

This Semler Brossy memo outlines the business case for having a clawback policy right now – and explains why it might be good to have one that’s even broader than what the Dodd-Frank rules would require. Check out the charts in the memo that show CEO pay & clawbacks as compared to the loss in market value for recent high-profile corporate scandals.