The Justice Department did not just willy-nilly announce its embrace of clawbacks and deferred payment compensation punishment as a remediation tool for companies that suffer an enforcement action and settlement.  To the contrary, DOJ has been examining this issue, even citing it in important policy spheres and enforcement actions, as an important tool in its arsenal.

Both the DOJ and the SEC have been weighing these issues under the rubric of remediation.  In particular, DOJ and the SEC have evaluated disciplinary actions for those directly involved in misconduct and even those who may not have been directly involved but were indirectly responsible for oversight and monitoring of the various actors. 

What is new – and exciting – is the extent to which DOJ is now open to examine the efficacy of these measures as an important alternative to massive criminal fines against companies that ultimately punish shareholders without holding accountable the bad actors beyond termination of employment.

In this Episode, Michael Volkov reviews recent expectations and tools designed to promote complaince incentives and disincentives.