Compensation & Misconduct: Two Examples

compensation

Everyone is buzzing these days about the Justice Department’s new ambitions to include executive compensation plans and disciplinary policies as part of effective corporate compliance programs, so today let’s review two recent enforcement actions that department officials have cited as examples: Danske Bank and Safran.  Both cases were resolved in December. Danske Bank pleaded guilty…

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Deep Dive Into DOJ Compliance Guidance

guidance

Last week the Justice Department released new guidance on effective corporate compliance programs, to incorporate the department’s new stance on compensation clawbacks and disciplinary procedures that it wants companies to embrace. Let’s take a close read of those changes to see what’s going on. The updated guidance comes after numerous speeches by Justice Department officials…

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More on Clawbacks, Message Apps

fcpa

We have more details today on the Justice Department’s new policies for compensation clawbacks, and how prosecutors will expect companies to govern employees’ use of “ephemeral messaging apps” as part of compliance settlements.  The news came from assistant attorney general Kenneth Polite, who spoke today at a white-collar crime conference in Miami. His remarks filled…

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Major Clawback Policy From DOJ

clawbacks

The Justice Department dropped several news bombs today likely to have a profound effect on corporate compliance programs, including new credits for companies that pursue clawbacks against misbehaving executives and an expansion of the department’s National Security Division to crack down on sanctions violations.  Deputy attorney general Lisa Monaco unveiled the plans in a speech…

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US Attorneys Adopt Self-Disclosure Policy

disclosure

U.S. attorney offices across the country have published a new, uniform policy for voluntary self-disclosure for corporate misconduct. The policy is largely in line with what the brass at the Justice Department have been talking about for months, although compliance officers should give the new policy a read anyway to avoid any surprises. The policy…

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Musings on ‘Aggravating Circumstances’ 

Aggravating

Today I want to return to the Justice Department’s new policies meant to encourage more self-disclosure of corporate misconduct, even from companies whose violations include aggravating circumstances. Those policies are a welcome step forward, but they create just as many questions for compliance officers as they answer. Let’s first review what these new policies are.…

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Danske Bank CCO to Depart in 2024

Danske

The chief compliance officer at Danske Bank has announced that he will be leaving the bank in 2024, raising a delicate but important question. Who’s going to certify the effectiveness of Danske Bank’s compliance program to the Justice Department when the bank is scheduled to do that in 2025? Satnam Lehal, Danske Bank’s chief compliance…

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New Sweeteners for Disclosure, Cooperation

fcpa

The U.S. Justice Department is amending its Corporate Enforcement Policy, offering more incentives for companies to self-disclose misconduct even if their cases involve aggravating factors that might tempt those companies to keep quiet. Companies in that predicament might still be able to secure a declination to prosecute from the Justice Department if they (1) self-disclose…

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Analyzing ABB’s Third-Time FCPA Case

ABB

Swiss industrial giant ABB settled its third FCPA case on Friday, in an enforcement action that generally offers good news for compliance officers but still upends the assumptions we’ve made lately about recidivist offenders and the punishments they’ll face. ABB agreed to pay $460 million in civil and criminal penalties and accepted a three-year deferred…

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More Major Justice Dept. News

fcpa

Corporate compliance officers, drop everything. We have a second speech from the Justice Department about corporate misconduct and compliance programs that needs your immediate attention.  Assistant attorney general Kenneth Polite gave the speech in Texas on Friday. It follows the speech that his boss, deputy attorney general Lisa Monaco, gave one day earlier in New…

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