Compensation Clawback Provision Clause Samples
A Compensation Clawback Provision allows an employer to reclaim previously paid compensation from an employee under certain circumstances, such as misconduct or financial restatements. Typically, this clause applies to bonuses, stock options, or other incentive-based pay, and may be triggered if the employee violates company policies or if the company discovers errors in financial reporting that affected the original compensation calculation. The core function of this provision is to protect the employer from unjust enrichment of employees and to ensure accountability for actions that could harm the organization.
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Compensation Clawback Provision. Executive agrees to promptly return to the Company any and all bonus and incentive-based compensation, including stock options and other equity-based compensation as well as profits and gains attributable thereto, Executive received from the Company to the extent the Company is entitled or required to recover such amounts by the terms of (a) any Company clawback or recoupment policy (as adopted, amended, implemented, and interpreted by the Company from time to time) which relates to the clawback or recoupment of such bonus and incentive-based compensation which was paid to Executive on the basis of revenues, net income, cash flow or other financial parameters relating to the Company’s financial performance which were subsequently determined by the Company’s independent auditors to have been materially inaccurate; (b) Section 954 of the ▇▇▇▇-▇▇▇▇▇ ▇▇▇▇ Street Reform and Consumer Protection Act of 2010 (as may be amended) and any implementing rules and regulations promulgated thereunder; and/or (c) Section 304 of the Sarbanes Oxley Act of 2002 (as may be amended) and any implementing rules and regulations promulgated thereunder.
Compensation Clawback Provision. Employee agrees to promptly return to the Company any and all compensation received from the Company, as well as profits and gains attributable thereto, to the extent the Company is entitled or required to recover such amounts by the terms of any Company clawback or recoupment policy (as adopted, amended, implemented, and interpreted by the Company from time to time) and/or Section 954 of the ▇▇▇▇-▇▇▇▇▇ ▇▇▇▇ Street Reform and Consumer Protection Act of 2010 (as it may be amended from time to time), Section 304 of the Sarbanes Oxley Act of 2002 (as it may be amended from time to time), and/or any other applicable law (including any implementing rules and regulations promulgated under any applicable law).