__________ Purport to Give an Employer the Right to Recoup

question 53

Multiple Choice

__________ purport to give an employer the right to recoup some or all of an employee's stock option gain if he or she goes to work for a competitor within a certain period of time following exercise of the option.

• A) Climb back provisions
• B) Incline clauses
• C) Let loose clauses
• D) Clawback provisions

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Definitions:

Stock Option

A financial derivative that represents a legal right to buy or sell a particular stock at a predetermined price within a specified time period.

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Shareholder

An individual or entity that owns shares in a corporation and has certain rights and responsibilities.

Corporate Assets

Assets owned by a corporation, including tangible and intangible items, that are used in the operation of the company.