Title 15 — Commerce and Trade
Chapter 98 — Public Company Accounting Reform and Corporate Responsibility
§ 7243. Forfeiture of certain bonuses and profits
Statutory text
Additional compensation prior to noncompliance with Commission financial reporting requirements
If 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—
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
any profits realized from the sale of securities of the issuer during that 12-month period.
Commission exemption authority
The Commission may exempt any person from the application of subsection (a), as it deems necessary and appropriate.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Sarbanes-Oxley Act of 2002
Pub. L. 107–204 title III § 304 · 116 Stat. 745
Enacted · 15 U.S.C. § 7243
(Pub. L. 107–204, title III, § 304, July 30, 2002, 116 Stat. 778.)
Source evidence
Code source credit
(Pub. L. 107–204, title III, § 304, July 30, 2002, 116 Stat. 778.)Enacted provision · exact public law section
SEC. 304. FORFEITURE OF CERTAIN BONUSES AND PROFITS. (a) Additional Compensation Prior to Noncompliance With Commission Financial Reporting Requirements.— If 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 Authority.— The Commission may exempt any person from the application of subsection (a), as it deems necessary and appropriate.
1 of 1 references resolved to an enrolled provision