With the passing of the Dodd-Frank bill, clawbacks will soon become a mandatory feature of the CD&A. Equilar's new report examines clawback policies and their preparedness for the regulations to come:
- Clawback policies are continuing to grow in prevalence. In 2006, 17.6% of Fortune 100 companies had a clawback policy. By 2010, 82.1% did.
- 81.3% of 2010s clawback policies had a provision for clawbacks in the event of a financial restatement and 78% had provisions in the event of unethical behavior by an executive.
- Financial, insurance, and real estate companies were most likely to have clawbacks. 90.5% of F100 financial, insurance, and real estate companies had a clawback policy in 2010.
2010 Clawback Policy Report