Clawback provisions in executive performance incentive schemes serve as a risk management tool, and the use thereof by companies listed on the JSE has increased in recent years. In South Africa, the regulatory regimes have not been developed to address this. Through a comparative study with the USA, this research proposes a taxation framework that South Africa could adopt in regulating the clawback process with respect to cash and equity-based incentive awards. This research scrutinizes the existing definitions of s 8C, the concept of remuneration and the income tax implications of a clawback. Suggestions and recommendations are made for future reform
