September 30, 2016—Professor Steven Bank was quoted in the New York Times on the rarity and ineffectiveness of executive clawbacks. One major reason is that corporate directors are typically given enormous leeway in deciding when to pursue them.
“When is the board going to do it? When they are pushed to the wall,” Professor Bank said in an interview. The language in the Wells Fargo policy gives its directors “a huge amount of discretion to say, ‘We did not determine there was misconduct,’” he added.