When you’re starting to drown between employee concerns, payroll duties and helping your CEO -- HR Insider is there to help get the logistical work out of the way.
Need a policy because of a recent regulatory change? We’ve got it for you. Need some quick training on a specific HR topic? We’ve got it for you. HR Insider provides the resources you need to craft, implement and monitor policies with confidence. Our team of experts (which includes lawyers, analysts and HR professionals) keep track of complex legislation, pending changes, new interpretations and evolving case law to provide you with the policies and procedures to keep you ahead of problems. FIND OUT MORE...
Model Contract Language for “Clawback” of Bonuses


Thanks for the article about the VW scandal and how a corporation could use a clawback clause to make an executive repay incentive bonuses if they only earned those bonuses because of wrongdoing that comes to light later.

 Do you know where I could go to get model language our company could use to make such a clawback arrangement with our high-paying execs?

— Name withheld


We originally intended to include such a model clause in the story. The problem is that a clawback arrangement has to be tailored to the unique situation. And because the potential variations in circumstances are infinite, offering up a generic, one-size-fits-all template wouldn’t have worked.

But while we can’t offer a template, there is a source where you can get examples of the clawback contract language actually used by major Canadian corporations (including Nortel Networks, Citigroup, General Motors and International Paper, to name a few) for different situations—the Canadian Coalition for Good Corporate Governance: Report on Clawback Provisions US and Canadian Issuers.