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“Clawback Comeback”: DOJ’s New Focus on Clawbacks to Prevent Corporate Crime

Proskauer's Employee Benefits & Executive Compensa

Executives can face clawback of previously paid compensation under various circumstances. The difficult issue is determining the reason for clawing back compensation (i.e., was it the result of “fault” or criminal conduct or an accounting mistake) and determining the executive’s “culpability” in securing unjustified compensation.