The SEC adopted long-awaited final rules that require the recovery of erroneously awarded incentive-based compensation of executive officers, as required by the Dodd-Frank Act. Under Rule 10D-1, each exchange must adopt listing standards that will apply to all listed issuers, with limited exceptions. Each issuer must adopt a clawback policy that complies with the requirements of the listing standards and is required to clawback the excess incentive-based compensation when an accounting restatement is required. The final rules, available here, will be effective 60 days after being published in the Federal Register; however, the stock exchanges have up to 90 days following that date to submit their proposed listing standards to the SEC for approval. Approved standards must be effective no later than 1 year from their publication date.  Once the approved stock exchange listing standards have been approved, an issuer has 60 days to adopt a compliant clawback policy.

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