NYU Law professor Samuel Estreicher and 2L Samuel Ball discuss the SEC’s new Rule 10D-1, which requires securities exchanges to mandate that listed companies adopt policies to recover erroneously awarded executive compensation in the event of an accounting restatement. Professor Estreicher and Mr. Ball explain how the new rule expands the scope of clawbacks compared to previous regulations and shifts the responsibility for implementing them from the SEC to the companies themselves, with the goal of improving compliance and avoiding potential legal challenges.