Clawback

Definition:

A provision by which any conferred property or right must be returned on the occurrence of a defined event. Often found in relation to employee incentive shares where employees may be required to return dividends received or the shares themselves if certain performance targets are not met or if such employee leaves the employment of the share-granting employer.

Equity Clawback provisions permit an issuer to redeem a certain proportion of their securities with the proceeds from the issuance or sale of its equity securities.

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