Clawbacks growing in popularity

Risk mitigation tool also sees stronger policies among S&P/TSX 60 companies
By Ming Young
|Canadian HR Reporter|Last Updated: 04/02/2019
United States Securities and Exchange Commission
Pedestrians walk past the United States Securities and Exchange Commission in Washington, D.C. Credit: Andriy Blokhin/Shutterstock

Clawbacks are an integral risk mitigation tool, providing many Canadian companies with the ability to recoup or cancel undeserved incentive payments or grants that were made under a different understanding of company performance or individual behaviours.

The prevalence of clawbacks among the S&P/TSX 60 companies has increased considerably in the past five years.

In 2013, 59 per cent of the companies said they had clawbacks, compared to 95 per cent in 2018, according to S&P/TSX 60 proxy circulars.