Executives could forfeit some compensation under new rule

Associated Press

Securities regulators wants to make sure publicly traded companies recover any executive compensation that’s awarded based on financial statements that are found to contain errors. The Securities and Exchange Commission said Wednesday that it has adopted a rule that calls on national securities exchanges to require the companies whose stock they list comply with the new compensation clawback policy. Companies will have to disclose any instance when they recovered erroneously awarded incentive-based compensation, whether from a current or former executive. The rule applies to compensation paid out up to three years before the date when a company is required to disclose an accounting statement.