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Robinhood's executive compensation clawback policy just FYI: In March 2021, our board of directors adopted a clawback policy effective upon the closing of this
by NovemberWhiskey 4y ago
Robinhood's executive compensation clawback policy just FYI:
In March 2021, our board of directors adopted a clawback policy effective upon the closing of this offering. Under our clawback policy, our board of directors may recover incentive compensation from an executive officer in the event of (i) a restatement of our financial statements or a material error in the calculation of one or more performance-based measures used to determine the amount of such compensation or (ii) the executive officer’s “detrimental conduct” (as defined in our clawback policy) that results in an excess performance payout, results in legal proceedings or causes us material financial or reputational harm
ref. https://www.sec.gov/Archives/edgar/data/1783879/000162828021013318/robinhoods-1.htm https://www.sec.gov/Archives/edgar/data/1783879/000162828021...
- gnu8 4y agoI'm wondering how much of that language is common to all publicly traded companies and how often the clawback policy is actually activated. Maybe the board sees enforcing the clause to be detrimental because it would impair their ability to hire another CEO, or it would have a chilling effect on the performance of CEOs in general. The board members are all wealthy themselves so this isn't a decision that affects their lives in any material way, except for their likelihood of being appointed to other company boards in the future. They basically meet in a fancy conference room once every six weeks to eat an expensive lunch and play-act at running a company.