Skip to main content

Norberg & Schultz Quoted in The National Law Journal on Sarbanes-Oxley Act Enforcement

September 16, 2022

Securities Enforcement & Litigation partners Jane Norberg and Christian Schultz were quoted in The National Law Journal article, “'They're Going to Go After the Leadership': SEC Aggressively Pursues Executive Compensation Clawbacks.” The article discusses the SEC’s potential plan to use the Sarbanes Oxley Act Section 304 (SOX 304) in enforcement.

Schultz noted that the new approach to using SOX 304 is much more aggressive than previous regulation attempts. He also cautioned that “CEOs and CFOs who are most at risk for the SOX 304 clawback need to ensure that they have strong leadership in compliance, risk management and in their legal department to ensure they’re thinking carefully and deliberately about the policies and the controls that are being put in place.”

Norberg stated that the SEC Enforcement Division is sending a clear message to company leaders that they are “looking at the tone set from the top and whether leadership has put proper controls in place — and if they haven’t, they’re going to go after the leadership.”

» Read the full article (subscription required).