In this podcast series, host Tom Fox explores the growing emphasis on clawback provisions in compliance programs and employee compensation. The Department of Justice and Securities and Exchange Commission now prioritize holding individuals accountable for misconduct, making clawbacks essential for promoting ethical behavior. These provisions allow organizations to reclaim incentive or bonus funds from employees who engage in misconduct, serving as a deterrent and ensuring accountability. The SEC has issued guidance through a final rule that requires companies to develop policies for recovering incentive-based compensation in the event of accounting restatements, while also prohibiting indemnity insurance for executives. These episodes provide valuable insights into the evolving landscape of compliance and FCPA enforcement, emphasizing the importance of clawbacks in promoting ethical practices and compliance with regulations.

 Three key takeaways:

1. The DOJ now mandates clawbacks in a compliance program.

2. The SEC has passed a clawback rule apart from the Monaco Memo.

3. Your clawback program should be well-documented. 

For more information, check out The Compliance Handbook, 4th edition, available on LexisNexis.com.

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