The Corporate Management Accountability Act of 2024 requires publicly traded companies to disclose whether they hold executives financially responsible when their companies pay fines and penalties. Under the bill, the Securities and Exchange Commission has one year to create rules forcing corporations to reveal if they have policies to recoup fines from executive compensation or withhold future pay when the company is penalized. Companies that have adopted such clawback policies must disclose how much they recovered from each top executive over the past three years, while those without such policies must explain why they believe this is in shareholders' interests. The legislation affects all publicly traded corporations and their named executives, aiming to better align executive incentives with shareholder interests by making executives bear some financial consequences for corporate wrongdoing rather than only shareholders. No specific funding is allocated, as the bill primarily requires regulatory action by the SEC.
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