Jason posted a condolence
Sunday, November 25, 2012
[80] meterObviously, private cratorope action rarely, if ever, makes the papers.Here is one report on clawbacks in state econ. dev. arrangements: Are Clawbacks Enforced? In a word, yes. Clawbacks are enforced, and increasingly so. While there are few reports of clawbacks being enforced during the 1990s, states are becoming more rigorous in their efforts to track performance and pursue repayment in cases where companies fall short. Here are just a few examples: • In August 2007, USA Today reported that, following an audit of its incentive programs, the State of New York sent letters to 3,000 companies that were found to have met less than 60 percent of what they promised. By January 2008 the Times Union reported 180 companies deemed not to have made progress toward their goals had been sent certified letters giving 10 days to explain shortfalls or face loss of Empire Zone certification. • In an article dated June 16, 2007, The Wall Street Journal reported that the State of Virginia has collected about $11 million in repayments since stepping up its audit program in 2002. The same article referenced new clawback provisions that had been put in place – and used – in New Jersey. • A report from the Office of the Governor in Texas on its Texas Enterprise Fund program indicates a total of approximately $300,000 has been recaptured from three companies since 2004. • Illinois' Annual Report of Recaptures Provision (6/1/07) shows 24 efforts have been initiated since 2004 to reclaim incentives; 16 have been completed. . . . /snipAnd this . . .SEC Brings First Sarbanes-Oxley Claw back Enforcement ActionThe SEC has brought its first enforcement action seeking to claw back incentive-based compensation from a former CEO not accused of wrongdoing. The SEC is seeking a court order directing the former CEO to pay back over $4 million in bonuses and stock sale proceeds that he received during the period for which his former employer's financial statements were later restated. . . . . SEC v. Jenkins, No. CV 09-1510-PHX-JWS (D. Ariz. July 22, 209) (in original, should be 2009).And this from Warnaco's financials: In March 2007, the Compensation Committee reduced the annual incentive compensation awards for the fiscal year ended December 30, 2006 (‘‘Fiscal 2006’’) for Messrs. Gromek, Rutkowski and Tworecke in the amounts of $45,600, $22,440 and $51,744, respectively, based on the restatement of our fiscal 2005 financial results in September 2006. And this is just a few minutes on Google. If I did a LEXIS search, I could probably find dozens.Further, I would not be surprised if there are clawback proceedings currently open against Fuld. They are unsexy claims and get buried in the noise of other litigation and the larger reasons for the clawback in the first place.
