Section 304 of the Sarbanes-Oxley Act requires executives to forfeit any bonus or incentive-based pay or profits (including stock options)from the sale of stock received in the twelve months prior to an earnings restatement.This is often referred to as:

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Section 304 of the Sarbanes-Oxley Act is commonly referred to as the "claw back provision" because it allows companies to "claw back" certain executive compensation in the event of an earnings restatement due to misconduct. This provision requires executives to forfeit any bonus or incentive-based pay or profits within 12 months prior to the restatement.

Section 304 of the Sarbanes-Oxley Act Requires Executives to Forfeit