34th International Financial Law Conference

17 May - 19 May 2017

Swissotel Tallinn

Session information

Clawbacks at publicly traded companies and financial institutions: threading the needle between incentives and accountability
Swissotel Tallinn


Banking Law Committee (Lead)
Financial Services Section (Lead)
Financial and Banking Law Conferences Subcommittee (Lead)
Legal Practice Division (Lead)
Securities Law Committee (Lead)
European Regional Forum


Clawbacks and other limitations on executive incentive compensation have been part of the regulatory toolkit for over a decade. Since the financial crisis, however, they have taken a more aggressive turn – from Dodd-Frank to CRD IV. Publicly traded companies generally, and financial institutions in particular, face an increasingly complex web of regulatory requirements, enforcement actions and investor demands. This session will provide the perspective of the advisor to public companies and financial institutions on the following questions: • What tools do regulators (in the US, UK and EU) have to clawback or limit incentive compensation? How have regulators used them to date? • What policies have public companies and financial institutions implemented that differ from – or even go beyond – legal and regulatory requirements? • What are best practices for affected companies attempting to balance legal, regulatory and investor requirements as they design executive compensation programmes? • What key steps must a public company or financial institution take when a clawback triggering event occurs? What are the lessons learnt from recent headline cases at financial institutions and other public companies? • What is the outlook for clawbacks and other limits on incentive compensation in the wake of Brexit and the US 2016 elections?