What is a clawback provision?

What is a Clawback Clause? A clawback clause is a provision within a business or employment contract that allows—under a prescribed set of circumstances—an organization to reclaim incentive or bonus funds previously paid to an employee.

What is a clawback provision in private equity?

Clawback provisions in private investment fund agreements are designed to require the general partner to return any excess distributions of carried interest if such distributions exceed the share of profits agreed upon among the investors and the general partner at the fund’s outset.

What does 24 month clawback mean?

*A 24 month pro-rated clawback in the event of an early cancellation of the contract, i.e. the customer will be liable for the outstanding pro-rata amount of the installation, connection, Wi-Fi router or black Smartbox (as applicable) should they cancel the contract within the first 24 month period from the service …

How do you claw back shares?

A clawback provision can appear in your employment agreement, stock grant agreement, or stock plan. If it is triggered, you must surrender to the company any gains from option exercises or restricted stock vesting, or any type of bonus or incentive compensation, within a certain period.

Are clawbacks effective?

The usual objective of a clawback provision is to deter managers from publishing incorrect accounting information. Academic research finds that voluntarily adopted clawback provisions appear to be effective at reducing both intentional and unintentional accounting errors.

What does 12 month clawback mean?

Free Installations usually comes with a clawback clause. Most of the ISPs that offer a free installation has a “clawback clause”, that usually states: “If you cancel within 12 months you are liable for the installation”. Fair enough – nothing in life is free.

How does GP clawback work?

This is a common term of the private equity agreement. To the extent that the general partner receives more than its fair share of profits, as determined by the carried interest, the general partner clawback holds the individual partners responsible for paying back the limited partners what they are owed.

What is 12 months claw-back?

What is a clawback provision in hedge fund?

What is Clawbacks Provision? Clawback provision permits the LP’s to “clawback” any carry forwarded amount which was paid during the life of the fund on prior portfolio investments. read more in order to normalize the final carry to the originally agreed percentage.

What is another word for clawback?

What is another word for claw back?

Are commission clawbacks legal?

Clawbacks are legal when part of an agreed sales compensation plan and are an acceptable way of protecting business revenue from misdeeds, mishaps, and missells. Sales representatives often have no problem with clawbacks as long as they are deemed fair and are clearly explained.

What is clawback salary?

Clawback is a provision under which money that’s already been paid out must be returned to the employer or the firm. This is a special contractual clause, used mostly in financial firms, for money paid for services to be returned under special circumstances or events as stated in the contract.