Tag: SEC approval

Mild reprieve on timing of clawback policy

As noted in TheCorporateCounsel.net blog, this week, the SEC posted notices that it is extending the time period for approval of the NYSE and Nasdaq proposed listing standards for clawback policies for listed issuers. Originally, the SEC was expected to approve (or disapprove or institute proceedings to determine whether to disapprove) the proposed new standards by April 27, 2023; the approval date is now extended to June 11. The SEC is extending the time period to allow “sufficient time to consider the proposed rule change and the comments received.” What does that time delay mean for companies? Under the SEC final rules and the proposed listing standards, each listed issuer must adopt the required clawback policy no later than 60 days following the effective date of rule, which, under the exchange proposals, is the approval date. That approval date now moves to June 11, which looks to be a Sunday, allowing companies a brief extension of time until around August 10 or so (depending on the date of the actual approval) to get their policies together.