clawback

American  

[klaw-bak] / ˈklɔˌbæk /

noun

1. the recovery of previously dispensed or protected money or benefits through a contractual provision or tax law, typically triggered to counter a shortfall in financial performance or offset a liability (often used attributively): Most public companies have clawback provisions, but boards choose not to invoke them.

   One executive’s clawback exceeded fifty million dollars.

   Most public companies have clawback provisions, but boards choose not to invoke them.

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verb phrase

1. to require the return of (money or benefits).

   The government will claw back subsidy payments from households in the higher of the two income brackets.

2. to recover (a previously held asset or status) with substantial effort.

   The reigning champions were unable to claw back a playoff berth after their dismal regular season.

Etymology

Origin of clawback

First recorded in 1950–55; clawback def. 1 derives from the verb phrase claw back (in the sense “to take back by great effort over a period of time”)

Example Sentences

"Clawback provisions may also result in suspension of deferred bonuses where an employee is under investigation for a regulatory or disciplinary matter."

From The Guardian • Jul. 3, 2012

Clawback provisions have long been standard at venture-capital and private-equity firms, where partners are expected to regurgitate past earnings to make good on unmet promises to investors.

From Time Magazine Archive

Clawback: Recovery by the company of bonuses or incentive compensation paid to a senior executive ...

From Time Magazine Archive