Executive-Bonus Clawbacks Get Long-Delayed Approval From SEC (2)

Corporate executives will have to pay back bonuses based on mistakes in their businesses’ financial reporting under a new rule from the US Securities and Exchange Commission.

The SEC approved the long-stalled regulation, which was required by the 2010 Dodd-Frank Act, on Wednesday. The so-called clawback requirements are meant to hold corporate leaders accountable for the errors, whether they’re the result of fraud or simply mistakes.

US Securities and Exchange Commission

Photographer: Zach Gibson/Bloomberg

Across Wall Street and major industries, executive compensation is often tied to firms’ financial performance, as described in their annual reports. Misstatements or errors can have a significant impact on business ...