In a constantly evolving corporate environment, the new NASDAQ and NYSE requirements concerning clawbacks and incentive-based compensations have prompted discussions among legal practitioners and corporations. A recent episode of “Just Compensation” that involved Kate Basmagian, Christine Osvald-Mruz, and Jessica I. Kriegsfield, further gave light on these changes.
The panel, which included skilled professionals like Kate Basmagian, partner in Lowenstein’s Capital Markets and Securities group and chair of the firm’s ESG group; Christine Osvald-Mruz, partner in the Employee Benefits and Executive Compensation group; and associate Jessica I. Kriegsfield, deliberated on how corporations should adapt to these new requirements.
As they discussed, these adjustments pertain to the new NASDAQ and NYSE clawback policy requirements, clarifying the new listing standards, including but not limited to, what companies must incorporate in their clawback policies and how they should prepare.
Given the prevalence of the issue and the potential impact on a wide range of corporations, it is unsurprising that these new regulations have garnered significant attention.
The panel also suggested what companies should do now. As with any changes in regulatory landscapes, it is pertinent not only to assess the legal requirements of these regulations but also to consider strategizing and implementing preventative measures that align with the company’s vision and objectives.
With a changing corporate horizon, it is crucial to understand and adapt to new regulations as they can significantly influence corporate practices and norms. Legal professionals are being encouraged to stay informed and active regarding these changes to continue to provide sound and clear counsel to their respective clients.