Companies Disclosing Their Executive Compensation Clawback Provisions

In the past few months, there has been a sharp rise in the number of clawback provisions being written into companies' incentive and compensation packages. In some cases, the provisions are a response to difficult economic conditions, while in others the companies are required to implement the...

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Bibliographic Details
Published inSEC filings insight Vol. 15; no. 4; p. 6
Main Author Atwood, John Filar
Format Journal Article
LanguageEnglish
Published New York CCH Incorporated: Health & Human Resources 26.02.2009
Subjects
Executive compensation
Provisions
TARP funds
United States > US
Online AccessGet full text
ISSN2574-7266

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Summary:In the past few months, there has been a sharp rise in the number of clawback provisions being written into companies' incentive and compensation packages. In some cases, the provisions are a response to difficult economic conditions, while in others the companies are required to implement the provisions because they are participating in the Troubled Asset Relief Program ("TARP") under the Emergency Economic Stabilization Act of 2008. In addition to the TARP provisions, clawbacks are provided for in Sarbanes-Oxley Act section 304. Clawback provisions, which vary by company, are designed to enable companies to recover performance-based compensation if it is determined later that the performance goals were not actually achieved. PrivateBancorp Inc is participating in the US Treasury's TARP Capital Purchase Program and, as a result, compensation of its executives is subject to certain limitations, restrictions and clawback provisions.
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ISSN:2574-7266