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

They could include clawbacks or contract cancellation, but they shouldn’t extend to capital-allocation decisions.

From Barron's

CLA president Victoria Vyvyan said the "clawback" proposal would limit the damage to family businesses while targeting "those who have bought land to shelter wealth for short-term gain".

From BBC

District Court for Rhode Island, seeking to block the clawback of $11 billion in public health funds.

From Salon

A "clawback mechanism" in the new arrangement is designed to stop the company making excessive profits if electricity prices rise steeply.

From BBC

The pair are expected to face questions over thousands of cases of clawbacks, particularly from those who are unpaid carers.

From BBC