Bonus Clawback

In recruiter context

Common in UK financial services (mandated by FCA/PRA rules), increasingly common in tech and senior commercial roles. Typical triggers: leaving within 12-24 months of receiving the bonus, gross misconduct discovered after the fact, or material restatement of the financials the bonus was based on. UK enforceability is mixed — courts will uphold reasonable clawback periods (up to 3 years for senior FS roles) but often won't enforce penalties dressed up as clawbacks. Candidates evaluating offers with sign-on bonuses or large variable comp should read the clawback clause carefully — a £30,000 sign-on with a 24-month clawback is effectively a £15,000 sign-on if you might move within 2 years.