U.S. companies whose financial statements contain errors may soon have to “claw back” some of their top executives’ compensation as a result.
The Securities and Exchange Commission will soon propose long-awaited rules forcing companies to claw back, or revoke, some of their top officials’ incentive pay if they have to restate the financial results that led to it, according to people familiar with the agency’s internal deliberations.
Unlike existing rules, in which clawbacks are triggered only in a narrow set of circumstances involving misconduct at companies that restate earnings, the SEC’s proposal would apply to all manner of restatements””including those issued because of mistakes.
*sniff* poor things…