Issue link: https://digital.shearman.com/i/1512772
Shearman & Sterling LLP 101 | Clawback Policies Clawbacks Past, Present and Future When we began collecting clawback data, less than 40% of annual Top 100 Companies disclosed a clawback policy. Now almost all of the Top 100 Companies (94) disclose a clawback policy. When we dig a little deeper, we have also seen an increase in detrimental clawback policies over time. Interestingly, the number of companies providing for enforcement discretion has remained steady over our data collection timeline. Compensation Subject to Clawback Dodd-Frank Act clawback policies are required to recover incentive- based compensation which, includes compensation granted, earned or vested based wholly or in part upon the attainment of a financial reporting measure, including where the actual payment can be adjusted through discretion. Voluntary clawback policies, however, permit a company to recoup a differing range of the form. Of the 94 Top 100 Companies that maintain a voluntary clawback policy, they may recoup Of the 94 Top 100 Companies that maintain a voluntary clawback policy Both cash and equity Cash only Equity only Not specified Retain discretion as to whether to seek enforcement Appear to provide for mandatory enforcement Not specified 7 73 12 84 2 4 1