Clawback

Clawback is a procedure whereby amounts paid to a company, if certain conditions are or are not met, must be repaid.

It is common in economic incentive deals between companies and governments, whereby the company must perform some action (e.g. hire a certain number of employees from the local area, build $X of facilities for the tax rolls). If the company fails to do so, the provision requires the company to repay the incentives.

It is also used for a financial company to be refunded bonus payments paid to employees in previous years in light of current losses. It is also used to recover commissions paid to other companies.