Bonus Clawback Agreement

September 12, 2021

More broadly, however, the exercise of the right to recover a bonus in the event of failure and not misconduct is likely to reflect both the flaws in a company`s governance processes and that of the individual. Serious misconduct by managers should be identified before paying bonuses. It is easier to refuse payment than to recover money already paid. Also, in cases where no one else saw signs of failure at that time, should individuals actually be required to repay the bonuses they received? In today`s business world, employers strive not only to recruit, but also to retain the best employees. The most used storage method is the bonus. Whereas previously bonuses were only paid for past performances, today they are increasingly used for “motivation at the front” purposes. However, to protect oneself or as insurance, employers have begun to include “salvage rules” in employment contracts. . . .

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