Clawback Provision: Definition & Example


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A clawback provision is a clause in a contract, usually an employment contract, that stipulates money or other forms of compensation, such as shares, already paid must be _____ under certain conditions.

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1. All of the following are examples of certain provisions that would require a clawback EXCEPT for _____.

2. Following the 2008 financial crisis, new bank regulation, known as _____, requires companies to have clawback provisions for executives' compensation if the financial statements are restated.

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About This Quiz & Worksheet

What is the purpose of a clawback provision? You can find out what you know about this term and provisions that would require a clawback by going through the quiz/worksheet combo.

Quiz & Worksheet Goals

Use these educational tools to discover how much you know about:

  • Comparing a clawback provision to an engineer building a bridge
  • Why clawback provisions are beneficial
  • Examples of provisions that would require a clawback
  • What a clawback provision stipulates

Skills Practiced

  • Information recall - access the knowledge you have gained about a bank regulation that requires companies to have clawback provisions for executives' compensation
  • Reading comprehension - ensure that you draw the most important details from the lesson on clawback provisions
  • Interpreting information - verify that you can read information about why clawback provisions are beneficial and interpret it correctly

Additional Learning

Clawback Provision: Definition & Example is a lesson you can use any time to review more topics about:

  • The meaning of 'clawback'
  • When clawback provisions are appropriate
  • Real-world examples of these provisions