Not Yet Registered?
You can have access to our in-depth exclusive content on NQDC in just a few clicks.
A clause in any type of compensation agreement, whether for NQDC or stock options, that terminates all unvested amounts if you leave the company to work for a competitor or for other specified reasons, such as a financial restatement. Legal victories by companies and new legal requirements (e.g. the Dodd-Frank Act) have boosted the popularity of these recoupment provisions and also clawbacks.