clawback

[ klaw-bak ]

noun

1. the recovery of previously dispensed or protected money or benefits through a contractual provision or tax law, typically triggered to counter a shortfall in financial performance or offset a liability (often used attributively): Most public companies have clawback provisions, but boards choose not to invoke them.

   One executive’s clawback exceeded fifty million dollars.

   Most public companies have clawback provisions, but boards choose not to invoke them.

verb phrase

1. to require the return of (money or benefits):

   The government will claw back subsidy payments from households in the higher of the two income brackets.

2. to recover (a previously held asset or status) with substantial effort:

   The reigning champions were unable to claw back a playoff berth after their dismal regular season.

Word History and Origins

Origin of clawback¹

First recorded in 1950–55; clawback def 1 derives from the verb phrase claw back (in the sense “to take back by great effort over a period of time”)

Example Sentences

The pair are expected to face questions over thousands of cases of clawbacks, particularly from those who are unpaid carers.

From BBC

They have called for additional clawbacks during negotiations with the White House over how to pay for additional aid for Ukraine.

From New York Times

Some clawback cases could become harder to win — or may be withdrawn.

From New York Times

During a press conference, Walters said the Oklahoma Department of Education is working closely with the federal government to ensure there is no clawback of the bonuses as long as all federal requirements are met.

From Seattle Times

Many therapists say they live in fear of clawbacks, where insurance companies can request thousands of dollars in back pay if they identify billing errors.

From Seattle Times