15-U.S.C.-78J-4
§78J-4 – §78J-4. Recovery of Erroneously Awarded Compensation Policy
Pathway
Title 15 > Chapter 2B > Section 78j-4
Details
- Reference: Section 78j-4
- Legend: §78J-4 – §78J-4. Recovery of Erroneously Awarded Compensation Policy
- USCode Year: 2013
Provision Content
(a) Listing standards
The Commission shall, by rule, direct the national securities exchanges and national securities associations to prohibit the listing of any security of an issuer that does not comply with the requirements of this section.
(b) Recovery of funds
The rules of the Commission under subsection (a) shall require each issuer to develop and implement a policy providing—
(1) for disclosure of the policy of the issuer on incentive-based compensation that is based on financial information required to be reported under the securities laws; and
(2) that, in the event that the issuer is required to prepare an accounting restatement due to the material noncompliance of the issuer with any financial reporting requirement under the securities laws, the issuer will recover from any current or former executive officer of the issuer who received incentive-based compensation (including stock options awarded as compensation) during the 3-year period preceding the date on which the issuer is required to prepare an accounting restatement, based on the erroneous data, in excess of what would have been paid to the executive officer under the accounting restatement.
(June 6, 1934, ch. 404, title I, §10D, as added Pub. L. 111–203, title IX, §954, July 21, 2010, 124 Stat. 1904.)
Effective Date
Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of Title 12, Banks and Banking.
U.S. Encyclopedia of Law Coverage
15-U.S.C.-78GG in the Legal Encyclopedia: Trade Law
In this entry about 15-U.S.C.-78GG, find legal reference material, bibliographies and premiere content related to trade law in the American Encyclopedia of Law, presenting a comprehensive view of the United States trade law-specific issues, written by authorities in the field.
15-U.S.C.-78FF in the Legal Encyclopedia: Securities Exchanges
In this entry about 15-U.S.C.-78FF, find legal reference material, bibliographies and premiere content related to securities exchanges in the American Encyclopedia of Law, presenting a comprehensive view of the United States securities exchanges-specific issues, written by authorities in the field.
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