Clawback


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Clawback

A dividend clawback is an arrangement whereby the equity owners commit to use dividends they have received in the past to finance the cash needs of the project or corporation in the future. Clawback has a more general definition. For example, premiums paid on an insurance policy may be refunded (or clawed back) if the policy is cancelled in a certain time frame. Such an arrangement is specified in the contract and referred to as a clawback provision.

Clawback

1. A drop in a security's price after a previous rise.

2. Money that must be refunded or given back for some reason or other. The term especially applies to tax advantages extended to a taxpayer subject to certain conditions that the taxpayer did not fulfill.

clawback

1. A provision in an incentive stock option that requires an employee to reimburse the company for any gains from exercising options in the event the employee goes to work for a direct competitor within a specified number of months of exercise.
2. Excessive management share of profits that must be refunded to investors of a venture capital fund. A clawback is required when managers of a venture capital fund take a contractual share of early investment gains that are subsequently reduced by losses.
References in periodicals archive ?
Sunderland City Council is refusing to say whether there is a clawback clause.
It's almost a wash with the clawback,'' said Vic Miller, a senior fellow at the research group Federal Funds Information for States.
to file a restatement); Sarah Johnson, Sarbox Clawback Ruling Could Keep
The Bank of England said yesterday it was consulting on plans to go even further with bonus clawback, with aims to give firms the power to recoup bonuses that had already been paid to staff in time for the 2014/15 bonus round.
If Glencore Xstrata chooses not to claw back on the deposit, it annexed from the JV and is not longer subject to any future clawback.
Scott Olsen, principal, human resource services, at PricewaterhouseCoopers LLP, says this provision requires companies to do something many aren't already doing, unlike other provisions--such as those addressing the use of compensation consultants, clawbacks, and advisory shareholder votes, to name three examples--where companies are already taking actions similar to those prescribed in the bill.
If they have a reserve to cover the amount of money then we would not have to borrow, but the issue is if the reserves do not cover the entirety of the clawback.
TO my great surprise, I find myself in complete agreement with Councillor Ken Walker (Claw Back Clawback, 01.
Reduce the depth of child and family poverty by restoring social assistance rates to adequate levels, and ending the clawback of child benefits from families on social assistance;
FAMILIES face being plunged into poverty by a clawback of overpaid tax credits, it was claimed yesterday.
Earlier, the Manitoba government fully restored the National Child Benefit Supplement, ending the clawback of this benefit from families participating in income assistance.