What does clawback mean?
noun
A clawback is a provision in a contract or agreement that allows one party to recover previously paid or given compensation if certain conditions are not met. It is often used in employment contracts or financial agreements.
Example
"The company included a clawback clause in the contract to ensure that the employee would return any bonuses if the company's financial performance did not meet expectations."
Definition generated by AI and curated by RJS Tech Solutions LLP.