Sunday, June 8, 2008
Now this could prevent fraud at mortgage lenders in future
READY for some good news from your humble research assistant? During this proxy season, almost 300 companies adopted provisions allowing them to recover executive pay that they find to have been based on incorrect financial statements. Four years ago, such clawback policies were found at only 14 companies.Only in executive payland would figures like these qualify as progress. But having boards agree to go after pay that was not in fact earned is, oddly, still something of a battle. Although pay for nonperformance — or even failure — seems an obvious no-no, shareholders have had to push hard in recent years to have companies institute such provisions.The most common — in 131 cases — were those that kick in when fraud is uncovered.