By Elizabeth G. Olson
FORTUNE -- As much as the disgruntled investing public would like to see dodgy executives thrown in jail, they may have to settle for the slower, but still painful, method of letting corporate boards wrest cash and stock from the wrongdoers.
Once an obscure concept, the right to reclaim compensation from executives who engage in ethical or financial misdeeds is becoming enshrined in corporate practices. A robust 86.5% of Fortune 100 companies have adopted "clawback" provisions that allow them to recover cash bonuses or stock from errant executives, according to data gleaned from recent federal securities filings.
Such provisions "now have become a widely accepted corporate governance practice," says Aaron Boyd, research director at Equilar, an executive compensation tracking firm. Its new "Clawback Policy Report" found that about one-third of the Fortune 100 adopted, or modified, their clawback policies in the wake of the 2008 financial crisis.
The clawback was the first thing invoked by J.P. Morgan Chase (JPM) to fend off criticism of its $3 billion, or so, in trading losses. The bank said it would restate its earnings for the first three months of this year. Restatements are a customary trigger for retrieving top-tier executive pay.
Last year's surprising 30% drop in compensation for in-house counsel could set the stage for cuts in CEO pay as shareholder ire over executive compensation grows. By Elizabeth G. OlsonJul 31, 2012 1:34 PM ET
True, older job seekers face a few extra obstacles. But you may be able to overcome them by turning your age to your advantage. Here's how.
By Anne Fisher, contributor
FORTUNE -- Dear Annie: I read your recent column on bridging the generation gap in the workplace between young bosses and older employees. It struck a nerve with me, because, frankly, I'd be delighted to work for a young boss if I MOREDec 9, 2011 10:41 AM ET
Despite shareholder attempts to get a handle on the company, it looks like it's going to be a long, hard road to reform. By Eleanor BloxhamNov 22, 2011 11:33 AM ET
There are plenty of good reasons to move to a job in nonprofit management, but a fat paycheck may not be one of them. By Anne FisherJul 15, 2011 11:18 AM ET
While millions are still out of work, U.S. CEOs received a 28% pay raise this past year. A lot of factors are driving the increases. Job performance isn't one of them. By Eleanor BloxhamJul 5, 2011 10:57 AM ET
Regulators ought to pay closer attention to the growing body of evidence that CEOs paid in stock and options are not any more likely to act in his or her company's best interest. By Eleanor BloxhamJun 2, 2011 1:48 PM ET
A recently proposed rule that addresses executive compensation at banks is a weak response to a problem that is larger than regulators seem to comprehend. By Eleanor BloxhamMay 31, 2011 11:18 AM ET
From executive compensation to political and lobbying expenses, the oil giant should expect some impassioned debate at its annual meeting.
By Eleanor Bloxham, contributor
FORTUNE -- The temperature will be rising in Dallas as ExxonMobil shareholders gather on Wednesday for their annual meeting -- and the oil giant's management team will be on the hot seat this year on a whole range of topics.
Proxy advisory firm Institutional Shareholder Services is recommending no MOREMay 24, 2011 3:27 PM ET
The results of the year's corporate board elections show that the consequences of financial reform legislation can actually go in favor of corporations. By Eleanor BloxhamMay 18, 2011 12:06 PM ET
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