Joseph Alley Quoted in CFA Magazine

AGG Partner Joseph Alley Jr. is quoted in an article titled “The Long Arm of the Claw: Will the Reach of Mandatory Clawback Policies Exceed Investors’ Grasp?” (subscription may be required to view full article), which appeared in the March–April 2011 issue of CFA Magazine. Section 954 of the Dodd–Frank Wall Street Reform and Consumer Protection Act requires all publicly traded companies on the U.S. stock exchange have a clawback policy in place. Though the details of the final regulations are yet to be determined, the Dodd–Frank Act mandates that the Securities and Exchange Commission make companies develop and implement strict policies for the recuperation of wrongly awarded compensation. Mr. Alley questions how companies will ensure that executives will have the money to pay back when needed, whether the companies will have to stipulate that bonuses cannot be spent for three years’ time.