Title 15 — Commerce and TradeRelease 119-73not60
§7243 Forfeiture of Certain Bonuses and Profits
Title 15 › Chapter 98— PUBLIC COMPANY ACCOUNTING REFORM AND CORPORATE RESPONSIBILITY › Subchapter III— CORPORATE RESPONSIBILITY › § 7243
Summary
CEOs and CFOs must return bonuses, incentives, equity pay and any profits from selling the issuer’s securities that they got in the 12‑month period after the report’s first public release or Commission filing, whichever came first, if the company must restate financials due to their misconduct. The Commission may exempt persons.
Full Legal Text
Title 15, §7243
Commerce and Trade — Source: USLM XML via OLRC
(a)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)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
Apr 3, 2026
Release point: 119-73not60