SEC Approves Dodd-Frank Clawback Listing Standards with October 2, 2023 Effective Date

On June 9, 2023, the U.S. Securities and Exchange Commission (the “SEC”) approved the clawback listing standards proposed by the New York Stock Exchange (“NYSE”) and The Nasdaq Stock Market (“Nasdaq”), each as required by SEC Rule 10D-1 in accordance with the  Dodd-Frank Wall Street Reform and Consumer Protection Act. Earlier in June 2023, both the NYSE and Nasdaq amended their proposed listing standards to provide for an October 2, 2023 effective date. Listed companies have 60 days after the effective date of the clawback listing standards, i.e., until Friday, December 1, 2023, to adopt and implement a compliant clawback policy. In approving these listing standards, the SEC observed that the effective date is consistent with Rule 10D-1 and language in the Rule 10D-1 adopting release, as well as being responsive to comments stating that listed companies anticipated an effective date of November 28, 2023.