The proposals align with the SEC’s recent rule related to the recovery of erroneously awarded incentive compensation.

On February 22, 2023, the Nasdaq Stock Market LLC (Nasdaq) and New York Stock Exchange LLC (NYSE) each filed proposed listing standards with the US Securities and Exchange Commission (SEC) related to the clawback of erroneously awarded executive compensation as required under Rule 10D-1 under the Securities Exchange Act of 1934. This rule, in part, directs stock exchanges to require issuers that are publicly listed in the US to adopt clawback policies that comply with Rule 10D-1.