Category Archives: E&O Insurance
 

The Executive Compensation Clawback Full Enforcement Act

July 11, 2012

Barney Frank (D – MA) recently introduced a bill that would prohibit individuals working for financial institutions from insuring against possible losses, including from having to repay illegally-received compensation or from having to pay civil penalties. The Executive Compensation Clawback Full Enforcement Act (“the Act”) holds “officers, directors, employees or other institution related parties personally liable” and does not allow them to hedge against the personal liability with insurance.

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