Clawback provisions allow a company to grant an executive stock and then increase their stock gains by manipulating the price of the stock through corporate buy back programs.

Question

Quizplus · Accepted Answer

Clawback provisions are actually designed to allow a company to recover money or stock options from an executive under certain circumstances, such as a corporate restatement due to financial misconduct or a breach of a non-compete clause. They do not involve manipulating the stock price to benefit the executive.

Clawback Provisions Allow a Company to Grant an Executive Stock