Clawback
A clawback is the recovery of funds disbursed due to non-compliance or fraud. It is a provision that allows firms to reclaim bonuses or incentives if certain conditions are not met.
Key Takeaways
- Clawback provisions recover funds in cases of non-compliance or fraud.
- Allows reclaiming bonuses or incentives.
- Ensures accountability and compliance.
- Common in executive compensation plans.
