The SEC recently announced its first-ever whistleblower award to a company employee who performed audit and compliance functions, and stated that it will pay more than $300,000 (representing 20% of the amount of monetary sanctions collected by the SEC) to such employee for providing the SEC with information that led to a successful enforcement action. Section 21F of the Securities Exchange Act of 1934 (“Exchange Act”) requires the SEC to pay awards, subject to certain limitations and conditions, to whistleblowers that voluntarily provide original information about violations of federal securities laws that leads to both successful enforcement of an action brought by the SEC and the SEC’s receipt of sanctions totaling more than $1 million. In the case of company employees whose principal duties involve compliance or internal audit responsibilities, a whistleblower generally must wait 120 days after reporting the possible violation to the company’s audit committee, chief legal officer, chief compliance officer, or the whistleblower’s supervisor before becoming eligible for awards. The SEC’s recent whistleblower award underscores the importance of promptly addressing information about potential violations of federal securities law reported internally by personnel who perform audit, compliance and legal functions.