Jesse Fried has posted a very interesting and persuasive article on executive compensation clawbacks:
On July 1, 2015, the Securities and Exchange Commission (SEC) proposed an excess-pay clawback rule to implement the provisions of Section 954 of the Dodd-Frank Act. I explain why the SEC’s proposed Dodd-Frank clawback, while reducing executives’ incentives to misreport, is overbroad. The economy and investors would be better served by a more narrowly targeted “smart” excess-pay clawback that focuses on fewer issuers, executives, and compensation arrangements.
Fried, Jesse M., Rationalizing the Dodd-Frank Clawback (April 12, 2016). Available at SSRN: http://ssrn.com/abstract=2764409
It'd be interesting to see his analysis frame applied to the new compensation clawback rule for banks.
