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

An NHS England spokeswoman said the clawback data was effectively "a year behind reality" and money being returned was reinvested into dentistry.

From BBC • Mar. 4, 2026

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

From Salon • Apr. 2, 2025

During a press conference, Walters said the Oklahoma Department of Education is working closely with the federal government to ensure there is no clawback of the bonuses as long as all federal requirements are met.

From Seattle Times • Jan. 31, 2024

The clawback will eat into the tax collection agency’s efforts to crack down on rich tax cheats.

From New York Times • May 29, 2023

"It's really unclear at this early stage of the proceedings how aggressively the FTX trustee will pursue the smaller clawback claims," he said.

From Reuters • Apr. 6, 2023