In Corporate Crackdown, U.S. SEC Takes Aim at Executive Pay

In Corporate Crackdown, U.S. SEC Takes Aim at Executive Pay

October 22, 2021, Reuters

Gerald Hodgkins spoke to Reuters regarding the SEC’s clawback power and the limited frequency with which it imposes this form of corporate misconduct regulation. Covington’s analysis found that since 2002, the SEC enforced the clawback power sparingly despite potentially hundreds of opportunities and only penalized executives not directly accused of misconduct 15 times. Gerald said it was unclear why the SEC had pursued so few such actions but noted that one potential reason could be “perceived unfairness.”