JP Morgan has confirmed it will bow to shareholder demands and make a public disclosure when it claws back money from executives, following a rule by the Securities and Exchange Commission (SEC), that now requires companies to disclose clawbacks under certain conditions. The bank said in a statement on Friday that its board of directors had approved an agreement with US District Judge Jed Rakoff allowing shareholders to vote for or against any proposed clawback.
JP Morgan has confirmed it will bow to shareholder demands and make a public disclosure when it claws back money from executives, following a rule by the Securities and Exchange Commission (SEC), that now requires companies to disclose clawbacks under certain conditions. The issue of clawbacks came to the fore when JP Morgan took back payments it had previously given to executives connected to the so-called London Whale incident, in which traders from the lenders investment office lost nearly $6bn.