The Advisors' Blog

This blog features wisdom from respected compensation consultants and lawyers

August 12, 2024

Clawbacks: Today’s Most Common Voluntary Triggers

We recently shared data from FW Cook showing that most large companies have added or retained more expansive clawback policies that go beyond the requirements of the listing rules. This HLS Blog post from the folks at the AI-powered legal intelligence platform DragonGC assesses what those policies look like and lists these most prevalent voluntary triggers at S&P 500 companies:

– Breaches of Company Policies or Legal Requirements: 51.4%
– Breaches of Fiduciary Duty or Fraud:  48.6%
– Misconduct with Reputational or Financial Harm: 32.9%
– Administrative Enforcement: 28.9%
– Termination or Criminal Resolutions: 23.9%
– Inappropriate Conduct: 20%

Join us at our 2024 Proxy Disclosure & Executive Compensation Conferences on October 14-15 in San Francisco to hear the latest on tricky clawback issues and market practice during our “Living with Clawbacks: What Are We Learning?” panel. You can peruse our agenda to see what else our expert practitioners will cover and register here for in-person or virtual attendance.

Meredith Ervine