(a) Additional compensation prior to noncompliance with Commission financial reporting requirementsIf an issuer is required to prepare an accounting restatement due to the material noncompliance of the issuer, as a result of misconduct, with any financial reporting requirement under the securities laws, the chief executive officer and chief financial officer of the issuer shall reimburse the issuer for—(1) any bonus or other incentive-based or equity-based compensation received by that person from the issuer during the 12-month period following the first public issuance or filing with the Commission (whichever first occurs) of the financial document embodying such financial reporting requirement; and
(2) any profits realized from the sale of securities of the issuer during that 12-month period.
(b) Commission exemption authorityThe Commission may exempt any person from the application of subsection (a), as it deems necessary and appropriate.
Structure US Code
CHAPTER 98— PUBLIC COMPANY ACCOUNTING REFORM AND CORPORATE RESPONSIBILITY
SUBCHAPTER III— CORPORATE RESPONSIBILITY
§ 7241. Corporate responsibility for financial reports
§ 7242. Improper influence on conduct of audits
§ 7243. Forfeiture of certain bonuses and profits
§ 7244. Insider trades during pension fund blackout periods