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  2. In finance, a clawback refers to12:
    • A contractual provision where money already paid to an employee must be returned to an employer or benefactor, sometimes with a penalty.
    • Often used in employee contracts for incentive-based pay like bonuses.
    • Commonly used in the financial industry.
    Learn more:
    A clawback is a contractual provision whereby money already paid to an employee must be returned to an employer or benefactor, sometimes with a penalty. Many companies use clawback policies in employee contracts for incentive-based pay like bonuses. They are most often used in the financial industry.
    www.investopedia.com/terms/c/clawback.asp
    The term clawback or claw back refers to any money or benefits that have been given out, but are required to be returned (clawed back) due to special circumstances or events, such as the monies having been received as the result of a financial crime, or where there is a clawback provision in the executive compensation contract.
    en.wikipedia.org/wiki/Clawback
     
  3. People also ask
    What is clawback in banking?What is Clawback? Clawback refers to a provision in a contract or agreement that allows one party to reclaim funds or assets that have already been disbursed. This provision acts as a safety net to safeguard the interests of stakeholders in various financial transactions.
    What is a clawback clause?A **clawback clause** is a contractual provision that allows an employer or benefactor to recover money already paid to an employee, sometimes with a penalty. Clawbacks are typically used in response toA **clawback clause** is a contractual provision that allows an employer or benefactor to recover money already paid to an employee, sometimes with a penalty. Clawbacks are typically used in response to
    Includes AI generated content
    Why are clawbacks important in finance?In conclusion, clawback provisions are an essential mechanism used in finance to safeguard the interests of stakeholders and hold parties accountable for their actions. By allowing for the recovery of funds or assets that were previously disbursed, clawbacks help to rectify financial harm and discourage fraudulent practices.
    What is a tax clawback?Clawbacks are basically a return of previously distributed money. Tax clawbacks are among the most popular type of clawback arrangements, providing instant and easy access to additional financing for a company in need. Clawbacks are also used to describe what, in effect, amounts to a return of previously distributed money.
     
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