Clawbacks and Cybersecurity: Two Compliance Tests Boards Must Pass

The U.S. Securities and Exchange Commission (SEC) is now enforcing two new initiatives that, together, create a direct test of how well boards manage accountability and risk. A new executive compensation clawback rule, along with cybersecurity disclosure requirements, is reshaping how public companies approach governance and disclosure. It is important for directors and in-house counsel to understand these initiatives and take several key steps now to stay on the right side of legal compliance….
By: Procopio, Cory, Hargreaves & Savitch LLP