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Clawback Rule Could Backfire
The New York Times; subscription may be requiredLink to more items from this source
July 14, 2015
"In theory, the new rule should make executives more accountable.... In practice, however, the new rule, on which the SEC is seeking public comment, is causing some head-scratching because its language could lead to a different, perverse consequence. Instead of acting as a check on compensation and accountability, the new law increasingly looks as if it could drive up base salaries -- and make executives less aligned with shareholders -- or increase incentive pay to even higher levels to account for the risk of any potential clawback."

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