The SEC has proposed forcing top executives to pay back their bonuses if financial statements have errors. And not just the CFO.
“Executives Could Pay for Accounting Errors,” The Wall Street Journal, July 2, 2015 C2. Proposal pending public comment.
Now, we can all be for taking steps to make sure a company’s financial statements are correct, but is it useful to penalize executives who have no control over the financials? And is it proper for the government to mandate this, rather than leaving it to the shareholders and the boards to work this out? And should executives get bonuses for results they do not control?
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