A phrase first coined in 2005, environmental, social, and corporate governance (“ESG”) is making headlines. ESG is a lens applied by investors to evaluate the extent to which corporations function with respect to a variety of pro-social goals. The term “ESG” is often used interchangeably with terms like “sustainable investing” or “socially responsible investing.” Both
SEC
SEC Reports Significant Increases In FY2021 Whistleblower Program
Fiscal Year 2021 was a record year for the Whistleblower Program (the “Program”) of the U.S. Securities and Exchange Commission (the “SEC” or the “Commission”). The Commission released its 2021 Annual Report to Congress (the “Report”) last Monday and it reflects substantial increases in many different metrics. The Program has already awarded more than $1.1…
SEC Adopts Amendments to Whistleblower Program Rules
The Securities and Exchange Commission has voted to adopt numerous amendments to the rules governing its whistleblower program. See https://www.sec.gov/news/press-release/2020-219
The whistleblower program serves as a significant tool for the Commission to encourage individuals to come forward with information regarding suspected security fraud. As set forth in the SEC’s press release, “The amendments to the…
SEC Announces Largest Whistleblower Award of 2020 – Over $27 Million
The Securities and Exchange Commission (the “SEC”) announced a whistleblower award of more than $27 million, representing the largest SEC whistleblower award of 2020. This is the sixth largest award overall since the inception of the SEC whistleblower program in 2011.
Congress established the whistleblower program to incentivize whistleblowers to report specific, timely, and credible…
The Role of Company Directors During COVID-19
The COVID-19 pandemic has had a dramatic impact on the management of organizations, including throwing managers at all levels into an “all-hands-on-deck” reactive mode. In large measure, the immediate focus of management-level employees has been on business continuity, particularly moving the organization to a work from home workforce, workforce management including reductions in force by…
The SEC Weighs In on Reporting Related to COVID-19
As previously reported, the SEC is actively responding to the new wave of issues presented by the coronavirus (COVID-19). However, as early as January 30, 2020, SEC Chairman Jay Clayton issued a statement identifying coronavirus as a potential concern.
Chairman Clayton’s statement advised that he had instructed the staff to monitor and provide guidance…
The SEC Reacts to COVID-19
Over the last few weeks, the SEC identified key initiatives it is implementing to address the effects of the coronavirus (COVID-19) on the nation and its financial markets. https://www.sec.gov/sec-coronavirus-covid-19-response The Commission stressed that it has remained fully operational and continues to process normal daily activities while undertaking additional initiatives to combat the impact of COVID-19. …
Over $2 Billion in Sanctions Ordered by the U.S. Securities and Exchange Commission
In its 2019 Annual Report to Congress, the U.S. Securities and Exchange Commission (“SEC” or “Commission”) whistleblower program announced a “momentous milestone”: The SEC has ordered over $2 billion in sanctions since the inception of the whistleblower program.
The Report outlined other key statistics from FY 2019. Approximately $60 million was awarded to eight…
Record High Awards and Supreme Court Decision Further Incent Potential Whistleblowers to Report Conduct to the SEC
On March 19, 2018, the Securities and Exchange Commission (“SEC”) announced its highest ever Dodd-Frank Act (“DFA”) bounty awards to three whistleblowers. These SEC awards represent a new milestone in the SEC’s ongoing efforts to incentivize would-be whistleblowers to report unlawful conduct directly to the Commission. Two whistleblowers will divide a nearly $50 million award…
New Chairman and Board Members Appointed to the SEC Board Created by the Sarbanes-Oxley Act of 2002
The Securities and Exchange Commission recently announced the appointment of William D. Duhnke III as Chairman and J. Robert Brown, Kathleen M. Hamm, James G. Kaiser, and Duane M. DesParte as board members of the Public Company Accounting Oversight Board (PCAOB). The Sarbanes-Oxley Act of 2002 established the PCAOB to oversee public companies and broker-dealers. …