Clawbacks
topic on 2 shows · 2 statements across 2 episodes
My First Million 
Capital Allocators
2 statements about Clawbacks, every show
Parr: Upfront bonuses with clawbacks drive better performance than deferred bonuses
“Another thing is you do clawbacks.
So you get 50% of a bonus upfront.
And if you don't achieve the goal that you said you're going to get done, then I'm going to do what's called the clawback and I'm going to take that money from you.
So you could do this with…”
Williamson: Escrowed performance fees work better than clawbacks due to loss aversion
“There's a lot of behavioral work that says that something that is escrowed is longer term than something that's a clawback. We have this loss aversion, right? So sometimes people have these fees and there's a clawback if you then underperform. Doesn't really w…”