The Securities and Exchange Commission (SEC) approved the NYSE and NASDAQ clawback rules, including Amendment 1, on Friday, June 9, 2023.

The new effective date of the rules is October 2, 2023, which provides companies with up to 60 days, or until December 1, 2023 , to implement a compliant clawback policy.

Click on the SEC’s stock exchange approval link for the full text.

NYSE VI. Conclusion IT IS THEREFORE ORDERED, pursuant to Section 19(b)(2) of the Act,59 that the proposed rule change (SR-NYSE-2023-12), as modified by Amendment No. 1, be, and hereby is, approved on an accelerated basis. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.

Nasdaq IV. Conclusion IT IS THEREFORE ORDERED, pursuant to Section 19(b)(2) of the Act,52 that the proposed rule change (SR-NASDAQ-2023-005), as modified by Amendment No. 1, be, and hereby is, approved on an accelerated basis. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.

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This Viewpoint is intended to inform compensation committees, executives, and compensation professionals about developments that may affect their companies; it should not be relied on as specific company advice or as a substitute for legal, accounting, or other professional advice.

General questions about this Viewpoint can be directed to Mike Kesner (mike.kesner@paygovernance.com).

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