All terms
Finance & Moneyadvanced

Clawback

Definition

A clause that lets a company take back money, shares, or benefits already given, usually if certain conditions are not met.

Why it matters

Clawbacks protect a business from paying for results that do not last, so they often appear in vesting and bonus terms.

Example

A clawback lets the company reclaim unvested shares if a founder leaves within the first year.

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