Title 15, Commerce and TradeRelease 119-110

§7243 Forfeiture of Certain Bonuses and Profits

Title 15 › CHAPTER 98 — PUBLIC COMPANY ACCOUNTING REFORM AND CORPORATE RESPONSIBILITY › SUBCHAPTER III — CORPORATE RESPONSIBILITY › § 7243

Last updated Sep 22, 2026|Official source

Summary

Makes a company's CEO and CFO pay back certain money if the company has to correct its financial reports because of misconduct that broke reporting rules. They must return any bonuses, incentive or equity pay, and any profits from selling the company's stock that they got during the 12 months after the company first publicly released or filed the faulty financial report (whichever happened first). The Commission can excuse someone from this rule if it decides that is appropriate.

Full Legal Text

Title 15, §7243

Commerce and Trade, Source: USLM XML via OLRC

(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)

(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.

Reference

Citations & Metadata

Citation

15 U.S.C. § 7243

Title 15, Commerce and Trade

Last Updated

Sep 22, 2026

Release point: 119-110