Skip to content

Jesse M. Fried & Nitzan Shilon, Excess Pay and the Dodd-Frank Clawback, Director Notes, No. DN-V3N20, Oct. 2, 2011, at 1.

Abstract: The Dodd-Frank Act requires firms to adopt clawback policies for recovering certain types of excess pay — overpayments resulting from errors in performance measures (such as reported earnings). We discuss the costs of excess pay to investors, explain why most firms’ existing arrangements fall far short of what the Dodd-Frank Act is likely to require, and offer guidance to boards seeking to eliminate the types of excess pay not reached by Dodd-Frank.