BusinessAugust 17, 2026
clawback
KLAW-bak
Definition
A contractual provision that allows an organization to demand the return of previously paid compensation or bonuses from an executive, typically triggered by specific events like financial restatements or misconduct.
Etymology
The term is a compound of the verb 'claw' (meaning to scrape or seize) and 'back,' originating in the early 20th century to describe the act of forcibly retracting or retrieving something previously given.
In the news
Dr. Shirley Zinn led the introduction of a clawback policy at SPAR to ensure executive accountability and better align management incentives with shareholder expectations.
Lwazi Koyana to Chair Spar
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