The term "claw back" means to:
A)take back incentive programs previously provided to employees.
B)remove merit pay as an incentive program,because it requires too much conflict between employees.
C)pull back bonus payments if the company has a bad profit year.
D)take away previously paid incentives from executives if the company misses certain revenue or profitability objectives.
E)take away ESOP programs by paying the employee shareholders at least a 10% premium on the shares that they hold.

Question

Quizplus · Accepted Answer

"Claw back" refers to taking away previously paid incentives, such as bonuses or stock options, if certain conditions are not met. This commonly applies to executive compensation if the company misses revenue or profitability objectives. Therefore, option D is the best choice that matches the definition of "claw back."

The Term "Claw Back" Means To