Difference between revisions of "Clawback"
(New page: '''Clawback''' is a procedure for a financial company to can take back bonus payments paid to employees in previous years in light of current losses. It has been widely proposed in 2009 b...) |
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| − | '''Clawback''' is a procedure for a financial company to | + | '''Clawback''' is a procedure whereby amounts paid to a company, if certain conditions are or are not met, must be repaid. |
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| + | 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. | ||
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| + | It is also used for a [[financial]] [[company]] to be refunded bonus payments paid to [[employee]]s in previous years in light of current losses. It is also used to recover commissions paid to other companies. | ||
[[Category:Finance]] | [[Category:Finance]] | ||
Latest revision as of 22:36, May 20, 2020
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.