Client Alert
Hold 'Til Retirement Policies and Clawback Provisions: Growing Trends in Executive Compensation
January 26, 2009
As a result of continuing intense scrutiny of executive compensation practices and the effect of increased regulation under the Emergency Economic Stabilization Act of 2008 ("EESA"), two compensation tools are gaining popularity: (i) "hold ‘til retirement" or "hold through retirement" ("HTR") policies and (ii) clawback provisions. Although the new EESA executive compensation requirements apply only to financial institutions participating in the EESA relief programs, all companies, not just financial institutions, should consider implementing HTR requirements and clawbacks as components of their executive compensation policies since the policies promote accountability and a focus on long-term performance.
Click here to read our client alert regarding HTR and clawback policies.
We are available to assist your Board and Compensation Committee in analyzing and implementing HTR policies and clawback provisions. If you have questions, please contact the Womble Carlyle attorney with whom you usually work or one of our Corporate and Securities Attorneys.
Womble Carlyle Sandridge & Rice Corporate and Securities Lawyers
Womble Carlyle client alerts are intended to provide general information about significant legal developments and should not be construed as legal advice on any specific facts and circumstances, nor should they be construed as advertisements for legal services.
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice within this client alert is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in a client alert.
