A Closer Look At Clawbacks

The Sarbanes-Oxley Act of 2002 and Dodd-Frank’s clawback provision both require a restatement. The restatement of financial results to correct material errors Рwhether those errors occurred by default or by design Рis a necessary condition for enforcing both the Sarbanes-Oxley Section 304 provision and the new Dodd-Frank law.