In Updated DOJ Compliance, Compensation Is a Lever; One-Word Change ‘Slapped Me in the Face’

Foley & Lardner LLP Partner Matt Krueger is quoted extensively in the article, “In Updated DOJ Compliance, Compensation Is a Lever; One-Word Change ‘Slapped Me in the Face,’” in the Report on Medicare Compliance, published by the Health Care Compliance Association. The article addressed DOJ’s recent updates to its Evaluation of Corporate Compliance Programs, including its new focus on claw back of executive compensation and employees’ use of personal devices and messaging applications.  “Both of these things are now squarely called out as areas to inquire about in effectiveness review, but they’re relatively new areas,” Krueger said. Krueger noted the update is “high-level guidance” and doesn’t dictate specific ways for companies to claw back compensation. “It’s uncharted territory for DOJ,” he added. In fact, “one would question whether DOJ has the experience to do this.” In deference to that experience gap, DOJ has left companies space to experiment with ways to slap hands for noncompliance.  Krueger cautions organizations to tread carefully with compensation consequences for misconduct. “Clawing back executive compensation is a big deal,” Krueger said. “People need to go slowly here and work with an executive compensation expert before they add clawback provisions in their agreements.”

To read the full article, click here.