Under Dodd-Frank, the SEC is authorized to provide monetary awards to individuals who provide it with information that leads to an enforcement action in which over $1,000,000 in sanctions is ordered. The range for awards is between 10 percent and 30 percent of the money collected. Thus, in a case like the one last year against Dell in which the company agreed to settle the matter by paying a $100 million penalty, a successful whistleblower could have received between $10 million and $30 million.

What determines whether a whistleblower in the example above will receive $10 million or $30 million or somewhere in between? As summarized on the SEC's Office of the Whistleblower website, Rule 21F-6 provides that the SEC must consider a number of different factors in making its determination: 

Factors that may increase the award percentage:

The significance of the information the whistleblower provides to the success of any proceeding brought against wrongdoers.

The extent of the whistleblower's assistance in the SEC's investigation and any successful proceeding.

The SEC's law enforcement interest in deterring violations of the securities laws by making awards to whistleblowers who provide information that leads to the successful enforcement of these laws.

Whether, and the extent to which, the whistleblower participated in his or her company's internal compliance systems before, or at the same time, they reported the information to the SEC.

Factors that may reduce the award percentage:

If the whistleblower was a participant in, or culpable for the securities law violations reported.

If the whistleblower delayed reporting the violations to the SEC.

If the whistleblower interfered with their company's internal compliance and reporting systems, such as making false statements to the compliance department that hindered its efforts to investigate possible wrongdoing.

The whistleblower rules state that a whistleblower who is denied an award altogether can file an appeal in the appropriate United States Court of Appeals within 30 days of the denial. However, if the SEC follows the factors above and authorizes an award between 10 percent and 30 percent of the money collected in the SEC or related action, then the SEC's determination of the amount of the award is not appealable.