(Reuters) – The US Securities and Exchange Commission on Thursday voted to revive a rule, left unfinished since 2015, that would extend the regulator's powers to cover executives' remuneration when a company has to restructure its finances due to compliance. lapses.
The SEC said it would seek a further round of public feedback on the rule, which was called for by Congress after the 2007-2009 financial crisis, with a view to likely completing the rule next year.
The SEC proposed a draft in 2015 but failed to complete it. The effort to revive the rule is part of a broader effort by the SEC, now controlled by the Democrats, to crack down on corporate misconduct by increasing its tools to punish executives.
Gary Genlser, the agency's chairman, said in a statement that opening the comment period gives the watchdog "an opportunity to strengthen the transparency and quality of company accounts, as well as the responsibility of business leaders towards their investors." and to all executive decision-makers who have received incentive compensation, including options, which dramatically expands the scope of the agency's existing clawback powers created in 2002.
The SEC could use the new power to recover compensation in excess of what the executive concerned should have received if a company had to redo its finances due to "significant non-compliance" with securities laws.
This would apply to compensation paid during the three years leading up to the recast ̵
It would also lead US stock exchanges to establish listing standards that would require each the issuer develops and implements such a policy.
The SEC's five commissioners voted unanimously to reopen the comment period on Thursday. Catalog