BusinessAugust 17, 2026

malus

MAY-luhs

Definition

A provision in an executive compensation contract that allows a company to reduce or cancel future bonuses or awards that have not yet vested.

Etymology

Derived from the Latin word 'malus', meaning 'bad' or 'evil'. In corporate finance, it is used to describe a negative adjustment or penalty applied to compensation.

In the news

Dr. Zinn was instrumental in introducing a malus and clawback policy to ensure executive management remains accountable to shareholder interests.

Lwazi Koyana to Chair Spar

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Business explainer

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