According to this FT piece:
“The US Securities and Exchange Commission’s attempt to use – for the first time – a “clawback” law against an executive who is not accused of any wrongdoing marks a new hard-hitting approach at an agency under pressure to restore its reputation.”
So if you are a top executive, and you get a pay out at a time when others in the company are committing crimes, your remuneration is liable for US clawback too.
The piece goes on to say that:
“Last week, the regulator asked a court to order the return of $4m (€2.82m, £2.43m) paid to Maynard Jenkins, former chief executive of CSK Auto, whose profits were allegedly inflated by accounting fraud committed by others: Mr Jenkins was not involved.”
So now there is even better reason, beyond reputation, for CEOs to ensure legal compliance is at the heart of their role.
And as we all know, ethics lead to compliance, not the other way around.
We’re holding a two day debate on this very point later in the year. Details are here.
The conference is called: “Ethics, values and corporate compliance –
How to persuade employees to do the right thing”.
We’re holding it in Brussels on 20-21 October.
Mention this blog and my colleague Anna will give you a 5% discount to come along.