back to article And then the SEC said, we'll claw back bad bonuses

Corporate executive officers who receive "erroneously awarded" incentive-based compensation will have to return those funds under newly confirmed securities rules. The SEC – America's financial watchdog – on Wednesday voted 3-2 along party lines to adopt rules called for under a provision of the Dodd-Frank Wall Street Reform …

  1. ecofeco Silver badge

    Voted along party lines

    Should tell you everything you need to know right there.

    The GOP are liars and thieves and so are its supporters.

    1. Snake Silver badge

      Re: Voted along party lines

      Yes indeed. As I said yesterday

      https://forums.theregister.com/forum/all/2022/10/26/ftc_blames_ceo_drizly_breach/#c_4556277

      ---------------------------------------------

      "What is the "big" surprise?? [/s] That the Republicans on the board voted against it.

      OF COURSE THEY WOULD.

      Yet more proof that American conservatives never met Big Money interests that they don't like."

      ---------------------------------------------

      But the peasants keep voting against their own best interests.

      Let them eat cake.

      1. Anonymous Coward
        Anonymous Coward

        Re: Voted along party lines

        But the peasants keep voting against their own best interests.

        Because if they didn’t vote for a lizard, the wrong lizard might get in...

        1. Snake Silver badge

          Re: lizard

          LOL

          I resemble that remark :p

          Lizards are good peoples. We just want to be left to our Sizzle stones and in peace, that's all.

          1. Yet Another Anonymous coward Silver badge
    2. spoofles

      Re: Voted along party lines

      Is it November already?

      That must be why Dem social media shills are in full flame.

      1. J. Cook Silver badge

        Re: Voted along party lines

        Oh, it's both sides, I assure you.

        There's been so much mud flinging between the sides that it's no longer funny, and I just want it to be over with.

  2. Anonymous Coward
    Thumb Up

    Good on the SEC

    As we've seen in far too many regulatory arenas, general fines are just subsumed as the cost of doing business. Going after the bonuses of the perpetrators is the way to go.

    Plus, as many of the perps are involved in SPACS, a scum like species of company, I find it satisfying that they will be targeted.

    And don't give me the Trumpian crocodile tears of Hester Preice. The rules don't seem too broad, inflexibility is good (to prevent reduced penalties), and impracticality can only be determined after the rule goes into effect.

    1. Notas Badoff

      Re: Good on the SEC

      I too find it hard to believe that requiring 50000 people to actually care about honesty and competence within their company is a bad thing.

      A few epics of woe from dozens of non-C-level execs unfairly penalized by shenanigans at the top will ensure the SEC has a steady back-channel of information from inside in the future.

      1. Strahd Ivarius Silver badge
        Trollface

        Re: Good on the SEC

        Honesty and competence are not conservative values...

  3. Richocet

    It's good to see this moving forward. I suspect an obstacle to it's success will be all the one-way doors such as family trusts, gifting, buying assets for relatives, Swiss and Cayman island accounts that these weasels can use to make their bonuses non-returnable.

    But if that leads to these mechanisms being targeted next, that is a good thing.

    The 'possession is 9/10 of the law' rule seems to broadly apply to ill-gotten gains, for example a person can use all of the money fighting in court, so none is left to recover whether in tax, fraud, or damages.

    I'm interested to hear what you think about this topic.

    1. MiguelC Silver badge

      They can try to make the assets non-returnable, but if they're made to be personally responsible for those bonus' return they'll have ta a) get the money back and pay up; or b) flee and avoid payment until justice catches them - and *then* pay up using whatever assets they have that may be seized by the courts

      1. Yet Another Anonymous coward Silver badge

        Executive bonuses will just include an insurance clause paying them any loss due to this.

  4. darklord

    Im assuming the money reclaimed will be minus the tax already paid on the gross bonus. otherwise thatll go straight into court of appeal. as you cant take money thats already been taxed as that needs to come from the federal goverment.

    I know nothing of US tax systems but i assume like the UK these extra bonses are subject to some sort of tax at source.

    1. Roland6 Silver badge

      Probably depends on whether it is classed as a fine or not; There is no tax reclaim on fines.

    2. Michael Wojcik Silver badge

      This is discussed in the article.

  5. Ace2 Silver badge

    Just to repeat:

    The Republicans on the SEC voted AGAINST this!

    This election is even more personal than usual for me, but by God, I’m tired of sharing a country with these… “people.”

    1. Snake Silver badge

      RE: the election

      Faux News will just spin the "No" vote as a win for the average Joe, and they'll swallow it lock, stock, and barrel.

      Really, Hearst would be proud of that part of today's society.

      1. Yet Another Anonymous coward Silver badge

        Re: RE: the election

        The government clawing back money from hardworking CEOs ? Of course the people are against it.

        Support your local plutocrats!

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