New York partner Doreen Lilienfeld (Compensation, Governance & ERISA) was quoted in Agenda, the Financial Times’ corporate governance publication, on February 23 regarding the increasing use of incentive compensation clawbacks in high-profile settlement negotiations.

Although they have not yet been mandated by Dodd-Frank, clawback policies have been voluntarily adopted by a growing number of compensation committees. Lilienfeld notes that such policies provide “an opportunity to assert on behalf of shareholders that the company adopts governance reforms that would be seen as best practices.” It remains to be seen how companies will revise their voluntary clawbacks once the final regulations are promulgated, she says.