Definition

A rule or agreement that allows a party to reclaim money or benefits that were previously given, often due to a mistake or failure to meet certain conditions.

Example

The company implemented a clawback policy to recover bonuses paid to executives who did not meet performance targets.

Conversation

Did you hear about the new clawback policy at work?

Yeah, I did! It sounds a bit strict, doesn't it?

I agree, especially if someone has to pay back bonuses they already received.

Exactly! It makes me worry about how performance will be judged.

Synonyms & Antonyms

Root Explanation

Clawback is formed from "claw" (from Old English "clawu", meaning a sharp, curved nail) and "back" (meaning to return or go back). The term refers to the act of reclaiming or recovering something, often money, that was previously given or paid out.

Memory Tip

Think of a 'claw' that reaches out to 'take back' something that was given away — that's what clawback means.

Visually Confused Words