The SEC's reopened comment period for a 2015 proposal that would establish listing standards for clawback policies of erroneously awarded compensation was published in the Federal Register. Comments must be submitted by November 22, 2021.

As previously covered, the SEC requested comments on all aspects of the 2015 proposal and developments in clawback policies since 2015, but specifically asked about, among other things:

  • the scope of "an accounting restatement due to the material noncompliance of [an] issuer with any financial reporting requirement under the securities laws"; and
  • the use of a "reasonably should have concluded" standard for triggering a lookback. 

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