New Rules Could Let Executives Ask For Extra Bonuses

Authored by Frances McKenna, a MarketWatch reporter based in Washington.

New rules that are designed to discourage executives from manipulating financial results to boost their bonuses may have a side effect — encouraging them to ask for more pay.

That's because of the rare, but not unheard of, situation where a company restates its earnings higher.

Read: Rarely enforced SEC rules may give green light to earnings manipulation

The new rules, designed to increase the reach of so-called "clawback" provisions, no longer require financial misconduct as a trigger for a potential clawback action; and would cover executives beyond only the chief executive and chief financial officers.