Clawback Guide

Clawback and malus mechanisms play an increasingly important role in modern remuneration frameworks, enabling employers to align incentive pay with long-term performance and accountability. Following the global financial crisis, scrutiny of variable compensation intensified, with concerns that short-term incentives encouraged excessive risk-taking. In response, regulators and businesses introduced mechanisms allowing variable remuneration to be adjusted after award, either by reducing unvested awards (malus) or reclaiming sums already paid (clawback), in circumstances such as misconduct, misjudged performance, or inaccurate financial results.

To support organisations navigating these issues, our team, together with firms across our Stronger Together network have produced a comprehensive guide covering everything from foundational principles to the practical enforcement of clawback. The guide spans 20 jurisdictions worldwide, offering a clear and comparative overview of key legal considerations.