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Might Shareholders Demand Broader Clawbacks Than Those Mandated by Dodd-Frank?
Towers Watson Link to more items from this source
Nov. 4, 2014

"Recently, some commentators have suggested that, because Dodd-Frank would require a clawback upon a material financial restatement, the only compensation that would be clawed back would be that tied to Generally Accepted Accounting Principles (GAAP) financial metrics.... Inversely, a performance metric tied to something not GAAP-related -- for example, one based on nonfinancial performance or even one that might feed into a GAAP metric -- would be exempt from the clawback. This possible interpretation raises obvious questions about whether companies might adopt plan metrics that would not subject incentives to a Dodd-Frank clawback. It also raises the question of whether certain incentive plan designs that are currently in vogue -- specifically, relative total shareholder return (TSR) plans -- would be subject to Dodd-Frank clawbacks."

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