Dodd-Frank Clawback Rules

Definition:

SEC rule directing US stock exchanges and securities associations to adopt listing standards requiring listed companies to establish and enforce policies to recover excess incentive compensation from executive officers in the event of a financial restatement due to material noncompliance with the securities laws if the compensation was based on misstated financial statements, stock price performance or total shareholder return. The NYSE and Nasdaq adopted listing standards implementing the SEC’s clawback rule.

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