March 20, 2023

DOJ: Credit For Strong Compliance Programs

On the criminal enforcement front, I blogged last week on that the DOJ has provided important guidance on a new pilot program that could reduce criminal fines for companies that are able to show that they’ve clawed back incentives from employees who were involved in the misconduct. Companies can also get credit for showing compliance-related compensation incentives, which this Gibson Dunn memo says could include:

– A prohibition on bonuses for employees who do not satisfy compliance performance requirements;

– Disciplinary measures for employees who violate applicable law and others who both (a) had supervisory authority over the employee(s) or business area engaged in the misconduct, and (b) knew of, or were willfully blind to, the misconduct; and

– Incentives for employees who demonstrate full commitment to compliance processes.

In addition, the DOJ updated guidance on corporate monitorships, employee personal devices & use of messaging platforms. The DOJ also continues to emphasize that it may give leniency when companies fully cooperate with investigations and remediate the problems, which John blogged about earlier this year. We’re posting memos about what the DOJ is looking for in our “Compliance Programs” Practice Area.

Liz Dunshee