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Compensation Clawback Provisions As a Best Practice in Corporate Governance for Executive Compensation
Michael Melbinger via Winston & Strawn LLP Link to more items from this source
[Opinion]
June 9, 2010

Excerpt: A company needs to be able to offer a level of certainty in compensation in order to recruit and retain executives. That is why companies usually strive for 'market' provisions. Interestingly, although institutional shareholders react positively to companies adoption of a clawback policy, they do not seem to make a distinction among the more severe and comprehensive policies and the less specific ones (at least so far). Institutional shareholders and the media have been giving companies 'good governance credit' for adopting almost any form of clawback.

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