More companies are taking the initiative to disclose their internal clawback policies despite delays in the final rulemaking deadline by the Securities and Exchange Commission to the first half of next year. In a report published by executive compensation data firm Equilar, the disclosure practice among Fortune 100 companies increased from 17.6 percent in 2006 to 84.2 percent in 2011.
Under the Dodd-Frank Act, companies that do not disclose their clawback policies are prohibited from listing in any U.S. securities exchanges. “With such severe consequences, the prevalence of Fortune 100 companies with publicly disclosed clawbacks will continue to increase,” says the report.
