Arnold & Porter’s memo: “How Updated DOJ Guidance on Compensation Clawbacks Intersects With the World of Employment Law” discusses the considerations and practical challenges associated with effecting the DOJ’s expectations articulated in its compensation clawback pilot program (we reported on here: “DOJ”).
Bryan Cave’s “Clawback policies: you do have a few options” identifies potential upsides of maintaining multiple clawback policies—one that complies with the forthcoming clawback listing standards and one that covers non-executive officers and accommodates broader board / board committee discretion than will be permitted by the listing standards. The post also addresses considerations relating to timing / methods of recovery and oversight.
“Preparing for SEC’s Clawback Policies: 10 Compliance Tips for Public Companies” from Morgan Lewis suggests 10 practical considerations for companies to promote compliance with the forthcoming clawback listing standards. Among other things, the brief but substantive piece addresses linking new and potentially existing incentive compensation arrangements with the new clawback policy/policies; consideration of one or multiple policies; policy scope; board/committee oversight and associated documentation; and consideration of other types of compensation and mandatory deferrals or holding requirements to ease enforcement, if required. As reported last week (see “Clawback Policy Deadline”), it is feasible that companies may need to have compliant policies in place by August 8.