Limiting, Clawing Back Executive Pay in the Wake of Financial Bailout

, New York Law Journal

As the government becomes increasingly more entangled in securing the financial footing of struggling companies, it may try to use several legal options that arose post-Enron, including the Sarbanes-Oxley Act, civil enforcement actions, and fines provided by criminal statutes, to recoup or "clawback" unearned performance-based pay. Attorneys David B. Pitofsky and Matthew Tulchin analyze the success of past recoupment actions and discuss what options may be available in the future.

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