Canadian Clawbacks: Increasing But Still Voluntary

"Clawbacks" are arrangements under which an employee forfeits previously awarded compensation, usually either as a result of a misstatement of the employer's financial statements, misconduct or "bad behaviour" of the employee or, more commonly, a combination of both. Clawback mechanisms can be used to cancel unvested awards or recoup proceeds from vested awards and can apply to various types of compensation, such as annual bonuses or longer term equity or non-equity awards. For a more extensive discussion of the types and forms of clawbacks, and considerations relating to adopting clawback policies, see our previous

Blakes Bulletin: Clawbacks Coming to Canada?

U.S. STATUTORY CLAWBACKS