The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject. In this episode, Matt and I dive into the hot topic of clawbacks, with a focus on Deputy Attorney General, Lisa Monaco's new pilot program and Kenneth Polite's take on the use of prosecutorial discretion for organizations. Our hosts explore the opportunities for corporate compliance and HR personnel for clawback solutions and the use of the Federation Corrupt Practices Act (FCPA). They also discuss the need for thorough documentation of personnel involved with and/or accused of illegal conduct, as well as the potential costs to shareholders. Bottom line: Tom Fox and Matt Kelly are here to take you on a deep dive into the complexities of clawbacks and help organizations get compliant and stay compliant.

Key Highlights

Prosecutorial Discretion and Credit [00:05:24]

Implications of the Foreign Corrupt Practices Act on Corporate Compliance and HR [00:09:41]

The Mathematics of Corporate Policy Development and Management [00:13:59]

Corporate Compliance and the Foreign Corrupt Practices Act [00:17:47]

Balancing Compliance and Risk in Business Practices [00:21:49]

 Notable Quotes:

1.     "It is part of the department's larger effort to hold individuals more accountable and to have companies basically be participants in that project and to have companies embrace the culture of compliance, how would you hold individuals accountable if you're the company, you'd have that clawback clause over their head, and then you would now have more incentive to actually use it, which is not necessarily an easy thing."

2.     "What we expect companies that use programs to address not only employees who engaged and wrongdoing a connection with conduct under investigation, but also those who had supervisory authority over the employees or business area engaged in in the misconduct and knew of or were willfully blind to the misconduct." 

3.     "You must have the clawback policies in place, at the time of resolution, then get a reserve credit for those clawback compensation moneys that you must successively claw it back within the term of the resolution." 

4.     "If you do try to recoup the compensation and you fail, you'll still be eligible for up to 25 percent of whatever you were trying to recoup.""

 Resources

Matt in Radical Compliance

Tom in FCPA Compliance and Ethics Blog

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