An SEC rule requiring exchanges to establish listing standards that require issuers to develop and implement clawback policies for erroneously awarded compensation will take effect on January 27, 2023. The notice was published in the Federal Register.

As previously covered, the rule requires issuers to publicly disclose executive compensation policies as an exhibit in their annual reports, along with additional disclosure detailing how they have applied the policies and any recovered amounts, as applicable. Exchanges require filing proposed listing standards no later than February 27, 2023, and the standards must be effective by November 28, 2023. Issuers that fail to comply will be subject to delisting.