clawback: meaning, definition, pronunciation and examples

C1
UK/ˈklɔːbak/US/ˈklɔbæk/

Formal/Technical

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Quick answer

What does “clawback” mean?

The recovery or repayment of money already paid out, typically by a government or corporation.

Audio

Pronunciation

Definition

Meaning and Definition

The recovery or repayment of money already paid out, typically by a government or corporation.

Any action or process of retrieving or recovering something, such as power, benefits, or rights, that was previously granted.

Dialectal Variation

British vs American Usage

Differences

No significant grammatical or semantic difference. Slight preference in UK for hyphenated form ('claw-back'), while US favors solid form ('clawback').

Connotations

Equally negative or neutral in both, suggesting enforcement of a contract or penalty. No additional connotations.

Frequency

Similar high frequency in both business and legal English. More common in the press in the US due to prominence of Wall Street and corporate governance reporting.

Grammar

How to Use “clawback” in a Sentence

[subject] imposed a clawback on [object][subject] is subject to clawbackclawback of [something]

Vocabulary

Collocations

strong
bonus clawbacktax clawbackenforce a clawbacktrigger a clawbackclawback provisionclawback clause
medium
significant clawbackdemand a clawbackcontractual clawbackgovernment clawbackfinancial clawback
weak
attempted clawbackpotential clawbackmassive clawbacklegal clawback

Examples

Examples of “clawback” in a Sentence

verb

British English

  • The chancellor seeks to claw back billions in lost tax revenue.
  • The contract allows the firm to claw back bonuses in cases of fraud.

American English

  • The board voted to claw back the CEO's stock options.
  • Regulators are trying to claw back the illicit profits.

adjective

British English

  • The claw-back provision was activated.
  • They faced a significant claw-back liability.

American English

  • The clawback provision was triggered.
  • He was subject to clawback rules.

Usage

Meaning in Context

Business

Refers to reclaiming bonuses or incentives from executives if performance targets are later missed or misconduct is discovered.

Academic

Used in economics and public policy to discuss government recovery of overpaid subsidies or tax benefits.

Everyday

Rare; might be used in news discussions about corporate scandals or government budget issues.

Technical

A specific contractual or regulatory mechanism for recovering funds.

Vocabulary

Synonyms of “clawback”

Vocabulary

Antonyms of “clawback”

Watch out

Common Mistakes When Using “clawback”

  • Using it as a verb (the verb is the phrasal verb 'to claw back').
  • Spelling as two separate words (*claw back - noun).
  • Confusing with 'chargeback' (a consumer bank transaction reversal).

FAQ

Frequently Asked Questions

As a noun, it is increasingly written as one solid word, especially in American English. The hyphenated form 'claw-back' is also acceptable, particularly in British English. As a verb, it is always the phrasal verb 'to claw back' (two words).

A 'refund' is typically a voluntary or agreed return of money (e.g., for a faulty product). A 'clawback' is a forced, often contractual or legal, recovery of money that was already legitimately paid out but is now being reclaimed due to subsequent conditions or wrongdoing.

Yes, but it's rare. It can metaphorically describe regaining lost power, territory, or advantages (e.g., 'the opposition's clawback of political ground'). However, its primary and most natural use remains in financial and legal contexts.

Not inherently. For the entity losing the money, it is negative. However, from a regulatory or governance perspective, clawbacks are seen as a positive mechanism for ensuring accountability and aligning incentives, especially in corporate compensation.

The recovery or repayment of money already paid out, typically by a government or corporation.

Clawback is usually formal/technical in register.

Clawback: in British English it is pronounced /ˈklɔːbak/, and in American English it is pronounced /ˈklɔbæk/. Tap the audio buttons above to hear it.

Phrases

Idioms & Phrases

  • No direct idioms, but related to 'claw back' (verb phrase).

Learning

Memory Aids

Mnemonic

Imagine a cat (or a bear) using its CLAWS to pull BACK (clawback) a tasty fish it had already given away.

Conceptual Metaphor

FINANCIAL TRANSACTIONS ARE PHYSICAL TRANSFERS (that can be reversed).

Practice

Quiz

Fill in the gap
After the financial misreporting was discovered, the board moved to the CEO's entire bonus from the previous year.
Multiple Choice

In which context is 'clawback' LEAST likely to be used?

Practise

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