SEC Clawback of Individual Officers' Gains
According to this article, the U.S. Securities and Exchange Commision is trying to use a provision in the U.S. Sarbanes-Oxley Act of 2002 against individual corporate officers. In the case of accounting fraud, they want to use the clawback provision to recover gains from officers, such as the chief financial officer, even if they had no hand in the fraud.
Do you think this is appropriate? More to the point, is it likely to drive any changes in corporate behavior?
Posted on Jul 29, 2009 by Norman Marks
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