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 ?
concern does not apply where the clawback policy targets only excess pay
Arguments in favor of clawback and quick-peek agreements emphasize their value in shielding lawyers from the oft-harsh consequences of unintentionally disclosing a privileged document during discovery--a practice not uncommon in complex litigation.
Sunderland City Council is refusing to say whether there is a clawback clause.
The department has now confirmed it will not be seeking any money in clawback.
This article discusses the accounting implications of equity awards that are subject to post-performance forfeiture or clawback provisions due to unperformed or underperformed post-performance obligations or the occurrence of certain post-performance events.
The delivery and settlement of the new shares subject to clawback and deferred settlement is expected to take place on 23 July 2013.
The bill is the Executive Compensation Clawback Full Enforcement Act of 2012, to be introduced by Rep.
8 million in stock profits as part of a clawback settlement.
The act's whistleblower incentives and protections and its incentive compensation clawback provisions are garnering additional scrutiny by audit committees.
The chain also pledged to pass on minimal price increases this spring - in contrast to the likes of Next which is upping prices by 8% to clawback higher costs.
Global Banking News-June 7, 2017--Former Deutsche executive rejects clawback claim
Clawback provisions were put in place or strengthened at all the top U.