- clawback
- 1) The ability to recover prior project cash flow that may have been distributed or paid away as dividends to sponsors. Bloomberg Financial Dictionary2) A dividend clawback is an arrangement whereby the equity owners commit to use dividends they have received in the past to finance the cash needs of the project or corporation in the future. Clawback has a more general definition. For example, premiums paid on an insurance policy may be refunded (or clawed back) if the policy is cancelled in a certain time frame. Such an arrangement is specified in the contract and referred to as a clawback provision. Bloomberg Financial Dictionary
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clawback claw‧back [ˈklɔːbæk ǁ ˈklɒː-] noun1. [countable] FINANCE when a company takes back new shares that it had offered to its present shareholders, but they do not want to buy, and offers them to other investors:• Just over 5.2 million new shares are being placed, with 3.1 million subject to clawback.
2. [countable, uncountable] when an authority gets back money from a person who previously received it from them:• In the privatisation of Belfast airport, the Audit Office criticized the Treasury for not including a clawback clause on any future resale.
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clawback UK US /ˈklɔːbæk/ noun [C or U]► FINANCE a situation in which a government or company takes back money that it has already paid: »A Parliamentary motion called for the clawback of tax credit overpayments.
a clawback clause/provision »Company clawback provisions would force executives who commit fraud to return bonuses and pay.
► STOCK MARKET a gradual increase in the the price of a share after it has gone down: »The airline managed a clawback of 4.1% of Monday's 7% fall.
► UK STOCK MARKET an offer to investors who already own shares in a company the right to buy some of the shares that it has offered to new investors: »New shares were placed on a 6% discount to the market price, with a clawback to existing company shareholders.
Financial and business terms. 2012.