Clawback Provisions in Executive Compensation Contracts
-
Johanna Stark
Abstract
Clawbacks are contractual provisions in executive compensation contracts that allow for an ex post recoupment of variable pay if certain triggering conditions are met. As a result of regulatory responses to financial crises and corporate scandals, as well as growing shareholder pressure to implement effective measures against executive misbehaviour, the prevalence of such clauses has risen considerably in the recent past, beginning in the US after the 2000 financial crisis. As clawbacks have become a buzzword in the European debate about also ensuring good corporate governance beyond the financial sector, it is time to critically discuss the hopes that have been associated with various types of such provisions.
© 2021 Walter de Gruyter GmbH, Berlin/Boston
Articles in the same Issue
- Creditor Protection and Divisions – Did the CJEU Get It Right?
- Towards Harmonised Frameworks for the Liquidation of Non-Systemically Relevant Credit Institutions in the EU?
- Go Preventive or Go Home – The Double Nature of MREL
- Wirecard and European Company and Financial Law
- Shaped by the Rules. How Inducement Regulation Will Change the Investment Service Industry
- Clawback Provisions in Executive Compensation Contracts
- Marcus Lutter (1930–2021)
Articles in the same Issue
- Creditor Protection and Divisions – Did the CJEU Get It Right?
- Towards Harmonised Frameworks for the Liquidation of Non-Systemically Relevant Credit Institutions in the EU?
- Go Preventive or Go Home – The Double Nature of MREL
- Wirecard and European Company and Financial Law
- Shaped by the Rules. How Inducement Regulation Will Change the Investment Service Industry
- Clawback Provisions in Executive Compensation Contracts
- Marcus Lutter (1930–2021)
