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.
Related terms
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