Clawback: Definition, How It Works, and Financial Examples What Is a Clawback? A clawback is a contractual provision requiring that money that's already paid to an employee must be returned to an employer or benefactor, sometimes with a penalty
What Is a Clawback Clause and How Does It Work? Clawback clauses let companies recover previously paid compensation Learn what triggers them, how recovery works, and what protections apply A clawback clause is a contract provision that lets one party reclaim money or benefits already paid out when certain conditions aren’t met
Clawback - Wikipedia A clawback provision is a contractual clause typically included in employment contracts by financial firms, by which money already paid to an employee must be paid back to the employer under certain conditions
Clawback, Repayment Forfeiture in Employment Contracts A clawback clause gives your employer the contractual right to recover money already deposited in your account These provisions most commonly target performance-based pay like annual bonuses, sales commissions, and incentive awards tied to financial metrics
CLAWBACK Definition Meaning - Merriam-Webster The meaning of CLAWBACK is the act or an instance of getting back money or benefits previously given out How to use clawback in a sentence
Clawback Meaning: The Legal Definition Explained (2026) A clawback recovers money because of misconduct, a performance failure, or another trigger defined in a contract Clawbacks also often come with penalties added on top of the amount recovered
Clawback: How it works, examples and best practice - Qobra A clawback is a clawback provision authorizing the company to recover all or part of a commission from an employee, with or without interest, and under certain conditions specified in the letter of objectives
What Is a Clawback Provision and How Does It Work? A clawback provision gives the former employer the right to demand that severance pay back, along with bonuses or vested stock options It adds a serious financial penalty to the breach, making it a much stronger deterrent than just threatening to sue
Clawback Clause: Definition, How It Works, and Practical Examples A clawback clause is a contract term that permits the recovery of previously paid funds or benefits It typically triggers when certain conditions are met, such as financial restatements, misconduct, violation of policy, or breach of contract