U.S securities regulators have proposed rules that would direct the U.S. stock exchanges to establish listing standards requiring public companies to adopt policies enabling them to claw back incentive-driven executive pay if it later turns out that the company has to restate its financial results,

The proposed clawback rules were announced Thursday by the U.S. Securities and Exchange Commission.

Under the proposal, companies would be required to develop and enforce policies to claw back executive compensation in the event of an accounting restatement. The listing standards would apply to incentive-based compensation that is tied to accounting-related metrics, such as stock price or total shareholder return. The requirement to claw back executive pay would extend three fiscal years preceding an accounting restatement. Companies would also be required to disclose these policies and any recoveries made from executive under these policies.

“These listing standards will require executive officers to return incentive-based compensation that was not earned,” said Mary Jo White SEC chairwoman, in a statement. “The proposed rules would result in increased accountability and greater focus on the quality of financial reporting, which will benefit investors and the markets.”

The proposals, which were drafted in response to U.S. regulatory reforms adopted in the wake of the financial crisis, are out for a 60-day comment period once they are formally published in the Federal Register.