15 USC § 7243 - Forfeiture of certain bonuses and profits

---
identifier: "/us/usc/t15/s7243"
source: "usc"
legal_status: "official_prima_facie"
title: "15 USC § 7243 - Forfeiture of certain bonuses and profits"
title_number: 15
title_name: "COMMERCE AND TRADE"
section_number: "7243"
section_name: "Forfeiture of certain bonuses and profits"
chapter_number: 98
chapter_name: "PUBLIC COMPANY ACCOUNTING REFORM AND CORPORATE RESPONSIBILITY"
subchapter_number: "III"
subchapter_name: "CORPORATE RESPONSIBILITY"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 107–204, title III, § 304, July 30, 2002, 116 Stat. 778.)"
---


# § 7243. Forfeiture of certain bonuses and profits

**(a)** **Additional compensation prior to noncompliance with Commission financial reporting requirements** If an issuer is required to prepare an accounting restatement due to the material noncompliance of the issuer, as a result of misconduct, with any financial reporting requirement under the securities laws, the chief executive officer and chief financial officer of the issuer shall reimburse the issuer for—

**(1)** any bonus or other incentive-based or equity-based compensation received by that person from the issuer during the 12-month period following the first public issuance or filing with the Commission (whichever first occurs) of the financial document embodying such financial reporting requirement; and

**(2)** any profits realized from the sale of securities of the issuer during that 12-month period.

**(b)** **Commission exemption authority** The Commission may exempt any person from the application of subsection (a), as it deems necessary and appropriate.

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**Source Credit**: (Pub. L. 107–204, title III, § 304, July 30, 2002, 116 Stat. 778.)