On October 26, 2022, the Securities and Exchange Commission (the
“SEC”) adopted final recovery rules, commonly referred
to as clawback rules (available here), directing national securities exchanges
and national securities associations to establish listing standards
that require issuers to develop, implement, disclose and comply
with a written policy for recovery of erroneously awarded
incentive-based compensation where the payment of such compensation
was made as a result of financial measures where a subsequent
accounting restatement was required. Although the final rules
largely follow the proposed rules, changes were made that generally
broadened their scope.
The table below summarizes the substance of the final recovery
rules.
