---
kind: "section"
citation: "15 U.S.C. § 7243"
title: "15"
title_heading: "Commerce and Trade"
number: "7243"
heading: "Forfeiture of certain bonuses and profits"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/7243"
units:
  - "Chapter 98 — Public Company Accounting Reform and Corporate Responsibility"
  - "Subchapter III — Corporate Responsibility"
---

# §7243. Forfeiture of certain bonuses and profits

- (a) **Additional compensation prior to noncompliance with Commission financial reporting requirements—** If an [issuer](/usc/15/7201.md?p=7) is required to prepare an accounting restatement due to the material noncompliance of the [issuer](/usc/15/7201.md?p=7), as a result of misconduct, with any financial reporting requirement under the [securities laws](/usc/15/7201.md?p=15), the chief executive officer and chief financial officer of the [issuer](/usc/15/7201.md?p=7) shall reimburse the [issuer](/usc/15/7201.md?p=7) for—
  - (1) any bonus or other incentive-based or equity-based compensation received by that [person](/usc/15/7a.md?p=6) from the [issuer](/usc/15/7201.md?p=7) during the 12-month period following the first public issuance or filing with the [Commission](/usc/15/7201.md?p=6) (whichever first occurs) of the financial document embodying such financial reporting requirement; and
  - (2) any profits realized from the sale of [securities](/usc/15/7201.md?p=14) of the [issuer](/usc/15/7201.md?p=7) during that 12-month period.
- (b) **Commission exemption authority—** The [Commission](/usc/15/7201.md?p=6) may exempt any [person](/usc/15/7a.md?p=6) from the application of [subsection (a)](#a), as it deems necessary and appropriate.

## Source credit

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