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Updates to SEC’s Executive Pay Clawback Rules

NYSE and Nasdaq have issued proposals for listed companies to recover erroneously awarded executive compensation. See details on the recent updates. 
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In 2022, the SEC issued a final rule creating standards for exchange-listed companies for the recovery of erroneously awarded executive compensation, known as a clawback policy. The New York Stock Exchange (NYSE) and the Nasdaq Stock Market (Nasdaq) recently filed their proposed listed standards. In January, the SEC provided additional clarity on application of the rule, which will be effective in 2024. This article provides details on the recent updates.

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