From October 26, 2022 post.
Today, Rep. Cindy Axne (IA-03) issued the following statement on the Securities and Exchange Commission (SEC) finalizing a rule requiring public companies to recoup unearned incentive-based compensation from executives.
“I applaud this SEC for finalizing a long overdue rule that holds executives accountable when collecting incentive-based compensation. The principle guiding this rule is simple: incentive-based compensation based on performance that was not justified by correct financial statements should be returned to the company.
This rule was specifically included in the Dodd-Frank Act after the financial crisis because we all saw the problems that bankers chasing big bonuses could create. As a member of the House Financial Services Committee, I have been asking the SEC for years to finalize this rule, especially after a Valeant Pharmaceuticals CEO walked away from the company with hundreds of millions in incentive-based compensation he didn’t earn.
Pharma CEOs shouldn’t be rewarded for hiking prices of life-saving drugs, and I’m pleased to see the SEC finally taking this step to discourage executives from bad behavior,” said Rep. Cindy Axne.
Rep. Axne led 9 Financial Services Committee members in writing to the SEC in October 2020 urging them to finalize this rule after a CEO of a pharma company which misled investors and the public about drug price hikes and profit shifting only paid back $700,000 of the $150 million he earned at the company.
Original source can be found here
