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 …
Yes indeed. As I said yesterday
https://forums.theregister.com/forum/all/2022/10/26/ftc_blames_ceo_drizly_breach/#c_4556277
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"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."
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But the peasants keep voting against their own best interests.
Let them eat cake.
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.
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.
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.
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
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.
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