The U.S. Securities and Exchange Commission (SEC) continues to broaden the use of forfeiture of executive compensation as a regulatory tool with an increased emphasis on making employers do the clawing-back themselves.

In October 2022, the SEC adopted the new Rule 10D-1, 17 C.F. R. §240.10D-1, or “Listing Standards for Recovery of Erroneously Awarded Compensation,” that directs “national securities exchanges and associations that list securities to establish listing standards that require each issuer to develop and implement a policy providing for the recovery…of incentive-based compensation.” See “Listing Standards for Recovery of Erroneously Awarded Compensation”, Exchange Act Release Nos. 33-11126; 34-96159, 87 Fed. Reg. 73,076, 73,076 (Nov. 28, 2022).