Reevaluating Your Company's Compliance Program

The Department of Justice Announces Compensation Incentives and Clawbacks Pilot Program

The United States Department of Justice's Criminal Division ("Division") announced a new program—called the Compensation Incentives and Clawbacks Pilot Program ("program")—that will shift the burden of corporate financial penalties away from shareholders and onto culpable corporate employees.¹

Additionally, the program's guidelines instruct prosecutors to consider possible fine reductions where companies seek to recoup compensation. Although the program's guidelines do not modify the Division's Corporate Enforcement Policy, the Evaluation of Corporate Compliance Programs, or the Principles of Federal Prosecution of Business Organizations, as best practice, many corporations will likely alter their compliance programs.