claw back bonuses

Meaning

To reclaim or take back bonus money that has already been paid to employees, usually due to later discoveries of misconduct, poor performance, or accounting errors. This is a common practice in finance and corporate governance, often enforced through 'clawback clauses'.

Examples

• Following the financial restatement, the board decided to claw back bonuses from the executive team.

  Following the financial restatement, the board decided to claw back bonuses from the executive team.

• New regulations make it easier for banks to claw back bonuses if employees take excessive risks.

  New regulations make it easier for banks to claw back bonuses if employees take excessive risks.

• The company's contract allows them to claw back bonuses in the event of ethical violations.

  The company's contract allows them to claw back bonuses in the event of ethical violations.

• They are attempting to claw back bonuses paid out during the years the fraud occurred.

  They are attempting to claw back bonuses paid out during the years the fraud occurred.

• It is legally challenging to claw back bonuses once they have already been spent.

  It is legally challenging to claw back bonuses once they have already been spent.

Common Mistakes

• ✗ The company wants to claw down bonuses from the managers.

  ✓ The company wants to claw back bonuses from the managers.

  The correct phrasal verb is 'claw back', not 'claw down' or 'claw out'.

• ✗ They decided to clawback the bonuses.

  ✓ They decided to claw back the bonuses.

  'Clawback' (one word) is a noun or adjective (e.g., 'a clawback clause'). As a verb, it should be written as two words: 'claw back'.

Related Expressions

Practice

• If the figures are found to be falsified, the firm will ___ paid to the directors.

  💡 take back extra financial rewards

  Show answer

  claw back bonuses

• The new policy gives HR the authority to ___ in cases of gross negligence.

  💡 reclaim incentive payments

  Show answer

  claw back bonuses