2019 US Code
Title 15 - Commerce and Trade
Chapter 2B - Securities Exchanges
Sec. 78j-4 - Recovery of erroneously awarded compensation policy
| 15 U.S.C. § 78j-4 (2019) |
| §78j–4. Recovery of erroneously awarded compensation policy |
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(a) Listing standards
The Commission shall, by rule, direct the national securities exchanges and national securities associations to prohibit the listing of any security of an issuer that does not comply with the requirements of this section. (b) Recovery of fundsThe rules of the Commission under subsection (a) shall require each issuer to develop and implement a policy providing— (1) for disclosure of the policy of the issuer on incentive-based compensation that is based on financial information required to be reported under the securities laws; and (2) that, in the event that the issuer is required to prepare an accounting restatement due to the material noncompliance of the issuer with any financial reporting requirement under the securities laws, the issuer will recover from any current or former executive officer of the issuer who received incentive-based compensation (including stock options awarded as compensation) during the 3-year period preceding the date on which the issuer is required to prepare an accounting restatement, based on the erroneous data, in 1 excess of what would have been paid to the executive officer under the accounting restatement. |
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(June 6, 1934, ch. 404, title I, §10D, as added Pub. L. 111–203, title IX, §954, July 21, 2010, 124 Stat. 1904.) |
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EFFECTIVE DATE
Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of Title 12, Banks and Banking. |
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1 So in original. Probably should be "compensation in". |
| United States Code, 2018 Edition, Supplement 1, Title 15 - COMMERCE AND TRADE |
| Bills and Statutes |
| United States Code |
| Y 1.2/5: |
| Title 15 - COMMERCE AND TRADE CHAPTER 2B - SECURITIES EXCHANGES Sec. 78j-4 - Recovery of erroneously awarded compensation policy |
| section 78j-4 |
| 2019 |
| January 24, 2020 |
| No |
| standard |
| 124 Stat. 1904 |
| Public Law 111-203 |
