The vesting of deferred bonuses is dependent on future service and subject to clawback provisions.
FORBES: Is Barclays Going To Put Its Money Where Its Mouth Is On Performance Incentives?
It is unclear how effective clawback policies have been in reining in risky behavior.
The spread of clawback provisions shows that there has been some change on Wall Street.
It is believed to be the first company to agree to disclose clawback dollar amounts.
As clawback jurisprudence continues in its infant stages, investors must simply wait and see.
Zeek receiver Ken Bell has not indicated whether he will pursue clawback litigation.
FORBES: Up Next For ZeekRewards Ponzi Scheme Victims...Clawbacks?
Clawback dates back to the creation of the welfare state, and the start of the National Insurance scheme in 1948.
"These two firms have set the standard for clawback policies in the banking industry, " said Mr. Liu in a statement Tuesday.
New York City Comptroller John Liu filed papers last year seeking to force the firms to strengthen their clawback policies.
The Committee reviews the operation of clawback provisions and may reduce the vesting level of an unvested deferred bonus (including to nil).
FORBES: Is Barclays Going To Put Its Money Where Its Mouth Is On Performance Incentives?
Clawback provisions may also result in suspension of deferred bonuses where an employee is under investigation for a regulatory or disciplinary matter.
FORBES: Is Barclays Going To Put Its Money Where Its Mouth Is On Performance Incentives?
In addition, all the banks had to implement clawback arrangements under TARP regulations, though some, like JPMorgan, already had policies in place.
Should those attorneys work for a number of years, for instance, Dewey might agree to absolve them of any future clawback claims.
WSJ: Storied Law Firm Dewey & LeBoeuf Pitches Plan for Rescue
Distribution is deferred and subject to a clawback, linked to the future profitability of relevant deals and the bank as a whole.
The banks said they adopted clawback policies but said little beyond that.
Therefore there is absolutely no reason why they should not also be added to the list of behaviors that might cause a clawback.
Capital One's previous clawback provisions covered only its top executive officers and triggered only in the event of a financial restatement or willful misconduct.
Thus, absent recoveries from any third-parties for their involvement in the scheme, clawback litigation is also sometimes the sole method of increasing victim recoveries.
FORBES: Up Next For ZeekRewards Ponzi Scheme Victims...Clawbacks?
With so-called clawback suits, Picard has also started to sue Madoff victims who took out more from the Madoff Ponzi scheme than they put in.
Global governance research firm GMI has been collecting data on clawback policies at all companies since 2006 when firms began to adopt these policies voluntarily.
Employers therefore thought that this was reasonable to compensate for their National Insurance contributions by deducting some of the state pension, hence the term clawback.
That forced Jenkins to pursue a settlement and the SEC enforcers, possibly seeking to avoid a constitutional test of clawback theory in court, negotiated a deal.
FORBES: No Intent, No Problem: SEC, HHS Pursue Strict Liability For Business Executives
According to Equilar, an executive compensation data firm, 84% of the Fortune 100 companies publicly disclosed clawback policies in 2011, up from a mere 17.6% in 2006.
FORBES: Bankers Will Still Get Their Billions Despite Clawbacks
Citi's revised clawback policy recoups pay where executives are responsible for material financial or reputational harm, either through their own actions or in failing to supervise others.
In hoping to contain such a problem, Dewey is considering a feature that would in effect give clawback waivers to attorneys who stay with the surviving firm.
WSJ: Storied Law Firm Dewey & LeBoeuf Pitches Plan for Rescue
While obviously unfavored by investors fortunate enough to eke out gains from the scheme, clawback litigation is often the single highest source of funds recovered for victims.
FORBES: Up Next For ZeekRewards Ponzi Scheme Victims...Clawbacks?
The provision that ultimately passed provides a clawback and recoupment look to bonuses through the TARP, at the discretion of an investigation by the Secretary of the Treasury.
On top of that there will be (for high-bracket savers) a 3.8% investment tax surcharge plus a clawback of deductions that effectively adds 1.2 percentage points to the stated tax rate.
Rarer still are clawback policies that encompass former executives.
FORBES: CNBC's Cramer Spits Into Wind On Clawbacks Of Fraudulent Bonuses
Koutoulas told Benzinga that if MF Global did indeed commingle client funds with their own accounts, as many suspect, customers of the brokerage would have clawback rights similar to the Madoff case.
FORBES: Benzinga Talks to MF Global Customer Counsel James Koutoulas
应用推荐