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Incentive Compensation Today's Popular Updates

Cooley LLP

Early Lock-Up Releases: Overview and Trends

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Lock-up agreements prohibit company insiders (founders, directors, executive officers and major stockholders) and other pre-IPO stockholders from selling their shares for a period of time after an offering. Lock-ups are...more

Cooley LLP

Are ESG performance metrics in comp plans just a layup with little impact?

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There’s been a lot of attention lately to the use of ESG metrics as incentives in executive compensation, perhaps because the concept of ESG has become something of a lightning rod in the political landscape—particularly...more

Snell & Wilmer

Corporate Communicator - 2024 Annual Meeting Season

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Clawback Rules. As previously discussed in last Winter’s Corporate Communicator, the Securities and Exchange Commission (“SEC") adopted final rules in October 2022 directing the NYSE and Nasdaq to adopt listing standards that...more

Skadden, Arps, Slate, Meagher & Flom LLP

SEC Approves Stock Exchange Rules for Dodd-Frank Clawbacks

On June 9, 2023, the Securities and Exchange Commission (SEC) approved, on an accelerated basis, the New York Stock Exchange’s (NYSE) and Nasdaq Stock Market’s (Nasdaq) proposed listing standards implementing the SEC’s...more

BakerHostetler

SEC Approves Final Nasdaq and NYSE Rules Regarding Recovery of Incentive-Based Executive Compensation Awarded in Error with...

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The Dodd-Frank Act of 2010 added Section 10D to the Exchange Act, which requires the Securities and Exchange Commission (SEC) to direct national securities exchanges to prohibit the listing of issuers that do not develop and...more

Holland & Knight LLP

NYSE, Nasdaq Amend Proposed Listing Standards Related to Clawbacks

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The New York Stock Exchange (NYSE) on June 5, 2023, filed an amendment to its incentive compensation clawback listing standard originally proposed in February 2023. The Nasdaq Stock Market followed suit and filed an analogous...more

Wilson Sonsini Goodrich & Rosati

NYSE and Nasdaq File Amended Proposed Clawback-Related Listing Standards [Updated]

Propose Effective Date of October 2, 2023 [Note: This post has been updated to reflect Nasdaq’s filing of an Amendment No. 1 on June 6, 2023 (posted June 7) proposing to delay the effective date of its clawback-related...more

King & Spalding

New Expansive Rules for Clawback of Incentive-Based Compensation

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Several recent developments with the U.S. Securities and Exchange Commission (“SEC”) come into effect this year, including the new pay-versus-performance proxy disclosure as well as new Rule 10b5-1 rules and related...more

Wilson Sonsini Goodrich & Rosati

SEC Extends Time for Review of NYSE and Nasdaq Clawback-Related Listing Standards

On April 24, 2023, the U.S. Securities and Exchange Commission (SEC) extended the time period for its review and approval of the clawback-related listing standards from April 27, 2023 to June 11, 2023....more

Skadden, Arps, Slate, Meagher & Flom LLP

Novartis’ $678 Million Settlement Sets Guideposts for Life Sciences Industry Speaker Programs

Novartis Pharmaceuticals Corporation (Novartis) recently entered into a civil settlement agreement with the Department of Justice (DOJ) to resolve allegations that the company paid health care practitioners (HCPs) who spoke...more

McManis Faulkner

Hazard Pay During COVID-19 – Who May Be Entitled And What To Do Next

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The current COVID-19 crisis has many employees asking (if not demanding) that they receive additional compensation for work that may put them at an increased risk of exposure to the coronavirus.[i]  Although their requests...more

Ervin Cohen & Jessup LLP

Employment Law Reporter May 2018: No Good Deed Goes Unpunished – California Supreme Court Decision May Change the Way Employers...

California is a difficult landscape for employers, and last month, the California Supreme Court made that landscape all the more difficult. In a case called Alvarado v. Dart Container Corp., the California Supreme Court...more

Bilzin Sumberg

CFPB Steps Up Oversight of Companies’ Compensation Programs Following Wells Fargo Scandal

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The Consumer Financial Protection Bureau (CFPB) will likely be weakened by the incoming Trump administration and its Republican allies in Congress. Exactly how, and how much, remains to be seen, however—and, in the meantime,...more

The Volkov Law Group

After Circling the Wagons: Wells Fargo’s CEO Finally Falls

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The Wells Fargo scandal represents a textbook case of compliance and culture failures. Recently, the scandal and Wells Fargo’s defensive crisis management strategy resulted in CEO Stumpf’s resignation. Stumpf’s demise was...more

Orrick, Herrington & Sutcliffe LLP

How to Avoid Director Pay Litigation

In the last few years, Delaware courts have issued several rulings in lawsuits involving complaints of excessive compensation to non-employee directors (1). The takeaways from these cases can be summarized as follows...more

Thomas Fox - Compliance Evangelist

Wells Fargo Week, Part III-the Bank Knew All Along

You know it is going to be a very bad day when, as a company’s Chief Executive Officer (CEO), you receive a letter asking the following, “Specifically, the committee should thoroughly examine this issue, including: How it is...more

Thomas Fox - Compliance Evangelist

Wells Fargo Week: Part I – Who’s Afraid of Virginia Woolf or What is Risk?

Edward Albee died last week. To my mind he was right up there with Arthur Miller and August Wilson as one of America’s greatest playwrights of the second half of the 20th century. His works were known, as noted in his New...more

BakerHostetler

Get Ready to Be Clawed, With the SEC's Blessing, and It May Cost You Dearly

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Imagine you are a former executive of a public company, where your role was unrelated to the preparation of its financial statements, and you are notified years after leaving the company that it will be pursuing the return of...more

K&L Gates LLP

Dodd-Frank Turns Five, What Comes Next?

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The 2008 credit crisis was the beginning of an era of unprecedented government management of the capital markets. July 21, 2015 marked the fifth anniversary of the hallmark congressional response, the Dodd-Frank Wall Street...more

Foley & Lardner LLP

Prepare to Attract Rock Stars from Day One: A Framework for Considering Equity Compensation in the C-Suite

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As your company grows, you may reach a point when you want to bring in big talent, whether it be a new CFO, Director of Marketing, or someone to take your brand into a new space. Many of these so-called “rock stars” may be...more

Constangy, Brooks, Smith & Prophete, LLP

Guidance On Employer Incentives For Wellness Participation Is On The Way, Says EEOC

Hallelujah! The Equal Employment Opportunity Commission announced this week that it plans to issue guidance on employers’ ability to offer incentives to employees based on their participation in wellness programs, or whether...more

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