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Global Institute of Internal AuditorsBreadcrumb SeparatorNewsBreadcrumb SeparatorBlog: Clawbacks on Executive Pay: Where Does Internal Audit Fit In?

Read Richard Chambers' Latest Blog
Clawbacks on Executive Pay: Where Does Internal Audit Fit In?​​

In his blog, IIA President and CEO Richard Chambers, CIA, QIAL, CGAP, CCSA, CRMA, shares his personal reflections and insights on the internal audit profession. Here's an excerpt from his latest post:

A recent report in the Wall Street Journal once again brings into sharp relief just how the repercussions of a crisis can play out. The Feb. 17 article, "U.S. Regulators Revive Work on Incentive-pay Rules" (subscription required) outlines how regulators are considering "clawback" provisions in compensation packages for certain employees of Wall Street firms. The idea is to require organizations to structure compensation so that executives would have to return bonuses if they are found to have committed an egregious error or fraud during their tenure.

The 2008 financial crisis had a significant impact on internal audit's scope of work and influence. Indeed, the 2010 U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act continues to impact internal audit plans across multiple industries. Now we have the potential for additional fallout as federal regulators consider rules to curb compensation packages that might encourage excessive risk-taking.

Read the full blog post from IIA President and CEO Richard Chambers.