Agenda – Boards Sharpen Tools to Circumvent ‘Ugly’ Clawback Process

In an attempt to sharpen the tools available to boards in the wake of a scandal, companies are amending otherwise standard clawback provisions or looking beyond clawbacks altogether. Indeed, following the MeToo movement, policies were expanded to include for-cause termination, misconduct and, in rare cases, sexual misconduct, as Agenda has reported. That trend has continued, according to regulatory filings and attorneys, but the lever is not always easy to pull, as illustrated by recent examples at McDonald’s and Goldman Sachs. Up against the potential for litigation and other challenges that stem from recouping compensation already paid out to executives, boards are now looking to draw out payout time lines, says Deb Lifshey, managing director at Pearl Meyer.

Agenda – Boards Sharpen Tools to Circumvent ‘Ugly’ Clawback Process

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