DOJ's Pilot Program on Clawbacks to Foster Individual Accountability Poses Challenges for Companies

The Department of Justice recently launched a three-year program requiring companies to implement compliance-related criteria into their compensation and bonus systems when entering into criminal resolutions. It is intended to increase personal accountability and prompt organizations to be more proactive in fostering compliance via compensation.

A reporter from The Anti-Corruption Report asked Henry E. Hockeimer, Jr. for his thoughts on the program.

“The potential difficulty here is imposing on senior management and the board tough decisions that could result in litigation by the uncharged party against the company for clawing back compensation,” he said. “In certain countries where employees have more expansive rights, this could get tricky.”

Mr. Hockeimer leads the firm's White Collar Defense/Internal Investigations Group.

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