SEC Adopts Proposed Rules on Incentive-based Compensation for Large Broker-Dealers and Investment Advisors


The SEC has adopted proposed rules on incentive-based compensation applicable to broker-dealers and investment advisors that have more than $1 billion in assets.  The rules are being  jointly approved by, and subject to the separate approval of,  the SEC and the Office of the Comptroller of the Currency, Treasury; Board... Read More

Topics: Banking, Broker-Dealer, Employment, Executive Compensation, Investment Advisers

SEC Settles Clawback Claim With Beazer Homes CEO


The SEC has announced a settlement with the chief executive officer of an Atlanta-based homebuilder to recover several million dollars in bonus compensation and stock profits that he received while the company was committing accounting fraud. According to the SEC’s complaint filed in federal court in Atlanta, CEO Ian J.... Read More

Topics: Employment, Executive Compensation, Litigation, Public Companies and Securities

Court Holds Dodd-Frank Ban on Arbitration of Whistleblower Claims is Retroactive


In Pezza v. Investors Capital Corp., (D. Mass. Civ. Ac. No. 10-10113-DPW), the plaintiff claimed he was wrongfully retaliated against, in violation of the Sarbanes-Oxley Act, after having raised concerns regarding misconduct by the defendants in connection with securities transactions.  The defendants raised the obligation to arbitrate as an affirmative... Read More

Topics: Employment, Litigation, Uncategorized

Beazer, Tyson and Other Say-on-Pay Results Through February 11, 2011


Developments this week included  another no vote at Beazer Homes and a three-year frequency cycle being approved at Tyson Foods.  Smaller reporting issuers who published a proxy statement before the SEC granted an exemption are seeking to limit the damage. Beazer Homes No Vote-Positive Results Don’t Count  53.7% of the... Read More

Topics: Employment, Executive Compensation, Public Companies and Securities

FDIC Adopts Proposed Interagency Rule to Implement the Incentive-Based Compensation Requirement Under the Dodd-Frank Act


The Board of Directors of the Federal Deposit Insurance Corporation, or  FDIC, today approved a joint proposed rulemaking to implement Section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.  Section 956 prohibits incentive-based compensation arrangements that encourage inappropriate risk taking by covered financial institutions and are deemed... Read More

Topics: Banking, Employment, Executive Compensation

First Public Company Receives Benefit of SEC Cooperation Policy—Implications for Whistleblower Claims


The first public company received credit for its cooperation as a result of the SEC’s policy with respect to cooperation in investigations and enforcement actions announced in January 2010.  The public company, Carter’s, Inc., entered into a non-prosecution agreement.  The SEC charged a former Executive Vice President of Carter’s Inc.... Read More

Topics: Banking, Broker-Dealer, Employment, Insurance, Litigation, Public Companies and Securities