Phillips & Cohen partner Erika Kelton makes a strong case for clawbacks in her latest article for Forbes.com, in which she analyzes the decision by car-rental giant Hertz to sue former executives for their alleged involvement in financial misconduct.
Hertz’s lawsuit against its former executives is illuminating for its recognition that “the tone at the top” of the company has enormous impact on overall corporate compliance
Hertz’s complaint against its former executives demonstrates the importance of having a C-suite that is committed to meaningful compliance. Corporate culture emanates from the top of the company, and as Hertz found, it can determine whether a company follows or breaks the rules.
More companies should use clawbacks to hold executives accountable for illegal or unethical corporate conduct under their leadership. Clawbacks should not be a rarity. They are among the most effective tools to both enforce and elevate business integrity from the top.
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Phillips & Cohen is the most successful law firm representing whistleblowers, with recoveries from our cases totaling over $12.3 billion. We have been recognized for our work by numerous national awards. Our attorneys and cases have been in The New York Times, The Wall Street Journal, the Financial Times and other news media. Three of our cases were featured in the CBS series, “Whistleblower.” Phillips & Cohen’s roster includes former federal prosecutors, the first head of the SEC Office of the Whistleblower, a former deputy administrator of the Centers for Medicare and Medicaid Services, the author of a leading treatise on the False Claims Act and attorneys with decades of experience representing whistleblowers.