clawback

American  

[klaw-bak] / ˈklɔˌbæk /

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.

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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.

Etymology

Origin of clawback

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

CLA president Victoria Vyvyan said the "clawback" proposal would limit the damage to family businesses while targeting "those who have bought land to shelter wealth for short-term gain".

From BBC • May 15, 2025

District Court for Rhode Island, seeking to block the clawback of $11 billion in public health funds.

From Salon • Apr. 2, 2025

FTX’s restructuring lawyers have already filed about a dozen suits, including against Bankman-Fried’s parents, and they expect to file more clawback claims this year.

From New York Times • Feb. 3, 2024

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 • Jan. 31, 2024

“All of our clients are evaluating their existing clawback policies and determining if any changes need to be made,” she said.

From Reuters • Aug. 7, 2023