DOJ Issues New Corporate Compliance Guidance For Compensation Clawbacks And Messaging Apps

On March 3, 2023, the Department of Justice (DOJ) announced noteworthy updates to its Evaluation of Corporate Compliance Programs (ECCP) guidance. In remarks at the American Bar Association's National Institute on White Collar Crime, Deputy Attorney General Lisa Monaco and Assistant Attorney General for the Criminal Division Kenneth Polite reiterated DOJ's goal of encouraging corporations to prevent and detect wrongdoing through robust corporate compliance programs. To that end, DOJ unveiled two important changes to its ECCP guidance. First, DOJ directed prosecutors to assess a company's compensation structures and announced a Pilot Program on Compensation Initiatives and Clawbacks (Pilot Program). Second, DOJ introduced new guidance for assessing how companies permit employees to use personal devices and communication platforms. Companies should review this guidance carefully and consider how their compliance programs would compare to DOJ's evolving expectations.