PwC recently analyzed the clawback policies of 100 large public companies as disclosed in their 2009 through 2012 year end proxies. The PwC report confirms the findings of a recent Equilar reportthat the number of companies disclosing clawback policies has seen a significant increase since the 2008 financial crisis. Other findings include:
*Most Common Triggers - The most common trigger was a restatement of financial results (92%), followed by employee misconduct (84%) and fraud (44%).
*Industry-Specific Triggers - Companies are beginning to develop industry-specific triggers. For example, 70% of the banking and capital markets firms surveyed had policies triggered by excessive risk-taking by executives.
*Discretionary Features - Most clawback policies (79%) included discretionary features for determining the amount of recovery, but very few provided for discretion with respect to the triggers.
*Award Types - The vast majority of policies (86%) covered both cash and stock awards.
The results of the study were published by PwC's human resource services practice. Additional information is available at: http://www.pwc.com/gx/en/hr-management-services/index.jhtml.