Andrew Ross Sorkin has a column about the potential unintended consequences of a Dodd-Frank rule mandating "clawbacks" of incentive pay for executives of publicly traded companies that restate earnings:
the new rule, on which the S.E.C. is seeking public comment, is causing some head-scratching because its language could lead to a different, perverse consequence.
Instead of acting as a check on compensation and accountability, the new law increasingly looks as if it could drive up base salaries — and make executives less aligned with shareholders — or increase incentive pay to even higher levels to account for the risk of any potential clawback.
