The article discusses the approval by the U.S. Securities and Exchange Commission (SEC) of clawback listing standards for the New York Stock Exchange (NYSE) and NASDAQ. These standards, aligned with the SEC Clawback Rules, mandate that listed companies develop and implement clawback policies for recovering incentive-based compensation from executive officers in the event of an accounting restatement. The article provides an overview of the key elements of the SEC Clawback Rules, including their application to all issuers, the triggers for recovery, the types of compensation covered, and disclosure requirements. The article also offers guidance for Canadian companies subject to these rules, highlighting potential implications and considerations for compliance with the new standards. The deadline for companies listed on NYSE and NASDAQ to adopt compliant clawback policies is outlined, along with the consequences of non-compliance, and the need for Canadian companies to adjust their compensation plans and policies accordingly. Additionally, the article touches on the perspectives of proxy advisory firms Glass Lewis and ISS, and the evolving market practice regarding clawbacks in Canada.

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The article discusses the results of the Singapore Governance and Transparency Index (SGTI) for 2023, which evaluates listed companies' disclosures and governance practices in Singapore. The average score for companies has improved from 70.6 to 74.8 compared to the previous year, indicating enhanced transparency and governance. The SGTI assesses companies in five areas: board responsibilities, shareholder rights, stakeholder engagement, accountability & audit, and disclosure & transparency. The highest average score is in the shareholder rights category, with an 87 percent average, showing a 4 percentage point increase. The lowest average score is for board responsibilities at 64 percent, although this is up from 60 percent in the previous year. Disclosure & transparency has also increased from 63 percent to 67 percent. Notably, there has been a significant rise in disclosure rates for indicators related to board practices and ESG (Environmental, Social, and Governance) practices. The SGTI's findings suggest that companies are disclosing more information about areas like board independence, competence, and selection of directors. ESG disclosure has also improved, with several indicators showing 8 to 10 percentage points of yearly improvement. The article mentions upcoming changes to further enhance the SGTI's scores. Singapore will implement new regulations regarding board independence and executive remuneration. SGX RegCo will enforce limitations on the tenure of independent directors and require companies to provide detailed breakdowns of CEO and certain director pay packages.

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The article discusses the enforcement of Dodd-Frank clawback policies under foreign law, focusing on executive compensation. The US SEC's Rule 10D-1 mandates the recovery (clawback) of incentive-based executive compensation in the event of accounting restatements. The NYSE and Nasdaq proposed listing standards to comply with this rule. The article explores how clawback policies could be enforced in various countries including Brazil, China, France, Germany, Hong Kong, Singapore, the United Arab Emirates, and the United Kingdom. It addresses aspects such as enforceability under local law, deducting amounts from future compensation, and provisions to enhance enforcement. The application of these policies varies across jurisdictions based on legal frameworks and regulatory guidelines.

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The SEC's Division of Corporation Finance issued 10 new Compliance & Disclosure Interpretations (C&DIs) on September 27, 2023, supplementing previous guidance on pay-versus-performance disclosure rules.

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PwC's updated Stock-based compensation guide covers accounting principles, measurement, vesting, expense attribution, and classification for stock-based compensation, with insights and references to FASB guidance.

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The article highlights the impact of executive compensation incentive on corporate innovation capability by categorizing it into short and long term incentives. Evidence from agro-based companies in China.

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Union demands for higher wages and addressing CEO-worker pay disparity are at the forefront in negotiations with Big Three automakers, potentially leading to a strike by United Auto Workers (UAW) members if not met. UAW is proposing a 40% wage increase over four years. CEO-worker pay gap highlighted.

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This article analyzes the effect of two corporate tax breaks, bonus depreciation and the Domestic Production Activities Deduction (DPAD), on executive compensation in publicly traded US firms. The author finds both tax breaks significantly increase executive compensation. For every dollar a firm benefits from the tax breaks, compensation of the firm's top five highest-paid executives increases by $0.17 to $0.25. The tax breaks increase compensation primarily in firms with weaker governance structures, suggesting the compensation response is driven by executive rent extraction.

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