Clawback compensation has been a longstanding tool for both public and private companies to recoup excesses paid to employees after the occurrence of certain untoward events. For example, it is not uncommon to find clawback clauses in separation agreements of public and private companies that operate to take back severance if the former employee breaches nondisclosure, non-solicitation, or non-compete agreements. Various executive compensation plans can likewise incorporate clawback provisions entered contractually by private companies. READ MORE