On June 9, 2023, the US Securities and Exchange Commission (SEC) approved amendments to clawback policy listing standards proposed by the New York Stock Exchange (NYSE) and the Nasdaq Stock Market LLC (Nasdaq) that extend the effective date of the exchanges’ respective listing standards to October 2, 2023. Under the amended listing standards, issuers listed on the NYSE and Nasdaq now have until December 1, 2023 (60 days from the new effective date) to comply with their respective exchange’s listing standards.

In addition to extending the effective and compliance dates for clawback policies, the NYSE’s amendment also updates its proposed delisting procedures for noncompliance to provide issuers a cure period of up to 12 months instead of immediate suspension of trading in such issuer’s securities and commencement of delisting. The NYSE’s updated delisting procedure is consistent with Nasdaq’s delisting procedure, which also allows for a cure period for noncompliance. The NYSE and Nasdaq proposed clawback policy listing standards that were originally expected to take effect on June 9, 2023, with a compliance date of August 8, 2023. Issuers listed on these exchanges will now have a few extra months to consider, discuss and adopt clawback policies before the revised deadlines.