The Advisors' Blog

Mark Borges continues to share noteworthy proxy disclosures on his “Borges’ Proxy Disclosure Blog.” ICYMI, here’s an observation he made last week after sharing some sample clawback disclosures.

Since this disclosure requirement became effective, I’ve now seen a smattering of companies where the completion of a recovery analysis ran up against the filing deadline for the proxy statement. In these instances, the company either filed an amendment to its proxy statement once the result of the analysis was known or, if the investigation went beyond the scheduled annual meeting date, disclosed the result in a current report on Form 8-K. The scenario is still sufficiently rare that a “best practice” has yet to emerge.

One such example is found in the definitive proxy statement of Core Scientific, Inc., which discloses that the company’s recovery analysis is ongoing and it has yet to determine whether a clawback will be required. Mark shared language from the company’s Compensation Discussion and Analysis.

If you aren’t yet a member with access to the Borges’ Proxy Disclosure Blog and all of the other resources on this site – such as our checklists, resource libraries, and the essential Lynn & Borges’s “Executive Compensation Disclosure Treatise” – email info@ccrcorp.com, call 1.800.737.1271, or sign up online.

– Meredith Ervine