DragonGC’s Compensation Clawbacks Report Identifies Several Clawback Triggers and Disclosure Trends
GREENWICH, Conn., June 10, 2024 /PRNewswire/ — DragonGC today released its latest research report on compensation clawbacks which examines how companies are discussing non-financial restatement-related compensation recoupment policies in their company disclosures. DragonGC analyzed the compensation clawback disclosures of S&P 500 companies that had filed individual disclosures within the last twelve months as of April 28, 2024 (a universe of 401 companies) and identified several key findings.
“With the SEC now requiring compensation clawbacks related to financial restatements, we were eager to see how many companies are not just complying with requirements but are going above and beyond,” said James Palmiter, CEO and co-founder of DragonGC. “The results of this report clearly demonstrate that companies are not just complying, but over 70% of them are exceeding requirements.”
DragonGC identified several non-financial restatement-related clawback triggers that S&P 500 companies have integrated into their compensation clawback policy disclosures, outlining six popular triggers in the report.
“Insights like these demonstrate the power of the DragonGC platform,” commented Neil McCarthy, Chief Product Officer and Co-founder of DragonGC. Our technology can quickly and accurately identify trends among large data sets, always referencing only original, verified source materials. “This information is critical for issuers to understand trends and how they stack up against other leading companies. For clients, we can also conduct bespoke analysis based on industry or other factors that may be meaningful,” McCarthy added.
Key Highlights of DragonGC’s Compensation Clawbacks Report:
- Clawback triggers: Our research uncovered six elements in clawback policies triggering compensation recoupment as disclosed by companies. Additionally, we analyzed trends indicating the varying incorporation of triggers, ranging from zero to six beyond SEC requirements.
- Alignment with key voting influencers: These clawback policies follow ISS, Glass Lewis, and BlackRock’s recommendations, stressing broad executive accountability, encompassing misconduct affecting financial and reputational integrity. They prioritize enforceability, transparency, and robust governance.
- Variance of triggers: Trigger specifics vary among organizations and are detailed in their individual clawback policies, granting the company discretion to reclaim compensation in situations reflecting poorly on the company or indicating failures of the executive officers to fulfill their duties responsibly.
Request a complimentary DragonGC Compensation Clawbacks Report at: https://bit.ly/3VbaFJU
About DragonGC
DragonGC is the go-to source for in-house counsel at publicly traded companies, powered by AI. With DragonGC, lawyers can navigate regulation easily with rapid access to authoritative materials and legal precedents in an integrated format with bespoke insights delivered by AI. Discover more at www.dragongc.com.
SOURCE DragonGC
