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Navigating SEC clawback rules in Mexico
14/12/2023
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Dollar and Mexican Pesos Bills stock photo
iStock.com/agcuesta
Authors
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Rafael Vallejo of Von Wobeser y Sierra
Rafael Vallejo is a partner at Von Wobeser y Sierra
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Alejandra Arizpe of Von Wobeser y Sierra
Alejandra Arizpe is an associate at Von Wobeser y Sierra

 

The US Securities and Exchange Commission (SEC) recently enacted Rule 10D-1, commonly known as the clawback rule, requiring public companies, including Foreign Private Issuers (FPIs – which, for the purposes of this article, include Mexican companies with securities listed on the NYSE or NASDAQ), to establish policies for the recovery of excess incentive-based compensation in the event of an accounting restatement.