Good morning. The Justice Department is looking to hit lawbreaking corporate executives where it hurts: their paychecks.

A new pilot program introduced this week encourages companies to leverage their compensation policies to reward good behavior by executives while punishing those who are involved in criminal offenses, Deputy Attorney General Lisa Monaco said Thursday, Risk & Compliance Journal's Dylan Tokar reports from an American Bar Association conference in Miami.

• Clawbacks can reduce fines: The program will allow companies to use executive-pay clawbacks to offset some of the financial penalties imposed on them when their employees violate the law.
   
• Executives will pay, not shareholders: “Our goal is simple: to shift the burden of corporate wrongdoing away from shareholders, who frequently play no role in misconduct, onto those directly responsible,” Ms. Monaco said.
   
• Joining the SEC: The U.S. Securities and Exchange Commission already has the ability to force chief executives and chief financial officers to return bonuses and other incentive pay when their companies run afoul of accounting rules. Justice Department officials say that rules already in place on clawbacks were narrow in nature.

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Justice Department is tasking dozens of new prosecutors with enforcing Russian sanctions.

The Biden administration is expanding its cadre of federal agents probing violations of sanctions and export controls against Russia, adding 25 new prosecutors, top officials said Thursday, as the U.S. seeks to shut down holes in the West’s economic pressure campaign.

The new prosecutors will work with corporations to investigate sanctions and export control evasion, and also bring criminal charges against companies when they commit violations, he said. Some of the additional prosecutors are new hires, while some are being reallocated from different sections, according to officials.

Ericsson to pay about $207 million after DOJ finds it breached deal.

Ericsson AB has agreed to pay $206.7 million in a foreign bribery settlement with the U.S. Justice Department, which found the telecommunications company had breached an earlier deal.

Stockholm-based Ericsson will plead guilty to the original charges it faced following its breach of a 2019 deferred prosecution agreement, the Justice Department said Thursday.

• The U.S. Commerce Department on Thursday targeted more than two dozen Chinese entities with export restrictions, part of a broader effort by the Biden administration to mitigate what it says is a growing national security threat from China.
   
• Ralf Brandstätter, Volkswagen AG’s China chief, this week said he saw no human-rights violations at a Volkswagen car plant in Xinjiang, China. Beijing has been targeting Xinjiang’s mostly Muslim ethnic minorities with mass-detention internment camps, which officials have described as vocational training facilities.
   
• The Supreme Court of India formed a committee to investigate the cause of the market turmoil that has engulfed Adani Group, billionaire Gautam Adani’s namesake conglomerate, saying it would look for regulatory failures or securities-law violations that could have contributed to a massive selloff in the group’s stocks.
   
• The Biden administration said it would pursue laws to establish liability for software companies that sell technology that lacks cybersecurity protections, concluding that market forces alone aren’t sufficient to guard consumers and the nation.
   
• FTX says it has identified a deficit of $8.9 billion in customer funds that it can’t account for, the first time the bankrupt cryptocurrency exchange has pinned down how much money has gone missing.

Global companies are finding it hard to leave Russia.

Moscow’s invasion of Ukraine triggered a wave of promises by global businesses to exit Russia. A year later, many of those companies are still there.

Even after finding a buyer, some companies say they are struggling to close deals, in part because of sanctions. And Russia hasn’t made getting out easy. In December, the Kremlin adopted rules requiring the Russian government to conduct an assessment of the market value of any asset for sale by a foreign company. The seller is then required to sell the asset at a 50% discount of that value.

U.S., Europe split on response to Iran’s nuclear enrichment.

The U.S. and its European allies have split over the response to Iran’s production of near-weapons-grade uranium, with Britain, France and Germany favoring a public censure of Tehran while the Biden administration is reluctant to do that, according to diplomats involved in the discussions.

The dispute comes as worries grow about Iran’s nuclear ambitions, while the prospects of reviving the 2015 deal—which lifted most international sanctions on Tehran in exchange for tight but temporary limits on its activities—appear slight.

• The State Department has approved a $619 million sale of hundreds of missiles to Taiwan to arm new U.S.-made F-16 jet fighters the island is expecting to receive by mid-decade. The proposed sale comes as tensions rise between Washington and Beijing.
   
• The Federal Reserve will need to raise rates to higher levels than previously anticipated to prevent inflation from picking up if the recent strength in hiring and consumer spending continues, a central bank official said Thursday.

• Global shipping executives are wrestling with plunging exports, falling freight rates and mounting suspense over whether the industry is headed for a price war in a reversal of the soaring demand the industry saw during the pandemic.
   
• Consumers pulled back on purchases of apparel and electronics in recent months while continuing to spend on groceries and other necessities, according to some of the largest U.S. retailers.
   
• Many bosses are calling workers back to the office. One big U.S. company told people hired on a remote basis that they need to start coming in.
   
• The latest storms in an unusually difficult winter for California forced Yosemite National Park to remain closed indefinitely on Thursday as parts of the park were buried in up to 15 feet of snow.