What are common clawback triggers?

Resignation within X months (e.g., 12–24), termination for cause, failure to meet performance goals, or breach of non-compete/non-solicitation. Some also clawback if the deal falls through.

Can I negotiate the clawback period?

Yes. Push for: (1) shorter period (6–12 months instead of 24), (2) pro-rata clawback (e.g., 25% per quarter), (3) no clawback if company initiates layoff, or (4) no clawback after first 12 months of employment.

What is pro-rata clawback?

You keep more of the bonus as time passes. If you have a $40K signing bonus over 24 months and resign after 12 months, you owe back 50% ($20K). After 18 months, you owe back 25% ($10K). This is much fairer than full clawback.

What are common clawback triggers?

Resignation within X months (e.g., 12–24), termination for cause, failure to meet performance goals, or breach of non-compete/non-solicitation. Some also clawback if the deal falls through.

Can I negotiate the clawback period?

Yes. Push for: (1) shorter period (6–12 months instead of 24), (2) pro-rata clawback (e.g., 25% per quarter), (3) no clawback if company initiates layoff, or (4) no clawback after first 12 months of employment.

What is pro-rata clawback?

You keep more of the bonus as time passes. If you have a $40K signing bonus over 24 months and resign after 12 months, you owe back 50% ($20K). After 18 months, you owe back 25% ($10K). This is much fairer than full clawback.

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Clawback Clause Review — Protect Your Compensation

Clawback clauses can reclaim signing bonuses, severance, and bonuses if you resign early, are fired for cause, or a deal falls through. A broad clawback clause can mean: resign after 12 months of a 24-month clawback period and owe back half your signing bonus. Our AI identifies clawback terms and calculates your net compensation after potential clawback risk.

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What Our AI Covers

Clawback triggers and conditions
Clawback percentage and calculation
Clawback period and pro-rata options
Interaction between multiple clawbacks (signing + severance)
Negotiation to reduce or eliminate clawbacks
Tax implications of clawback repayment

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Comprehensive Clawback Clause Analysis — Frequently Asked Questions

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