In another sign that Joe Biden’s Securities and Exchange Commission (SEC) is serious about holding companies more accountable, a commissioner argued recently the agency should not consider the impact of a large fine on a firm’s shareholders when it is devising punishment for corporate malfeasance.
Caroline Crenshaw, a Democrat, told the Council of Institutional Investors during a virtual conference Tuesday that “corporate penalties should be tied to the egregiousness of the actual misconduct—not just the benefit or impact on the shareholders.”
