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clawback provision

KLAW-bak pruh-VIZ-hun

ˈklɔːbæk prəˈvɪʒən

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Syllable breakdown

clawbackprovision

Dictionary meaning

contractual right allowing a company to reclaim compensation already paid to an executive, typically triggered by financial restatements, fraud, or misconduct; required by the Dodd-Frank Act in the US for listed companies; aims to ensure executive pay reflects genuine performance

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