Pressured to Sell

A clawback or clawback provision is a special contractual clause typically included in employment contracts by financial firms, by which money already paid must be paid back under certain conditions. The term also is in use in bankruptcy matters where insiders may have raided assets prior to a filing, and in Medicaid, when a state recovers costs of long-term care or covered medical expenses from the estates of deceased Medicaid patients. The aim of the clause is to secure an option for an employer or trustee to limit bonuses, compensation or other remuneration in case of catastrophic shifts in business, bankruptcy, and national crisis as the financial crisis of 2007–2010, and for states to recoup the cost of administering Medicaid services. Source, Wikipedia…

 

The term clawback is recently in the financial news because of Wells Fargo’s retail banking employees were pressured into cross selling products to bank customers without their knowledge. I know a little something about cross selling having done so in three industries in which I previously worked, all above board and with the customer’s knowledge I may add, all for employee enhancement in the eyes of management or monetary bonuses. I can understand just how such a scheme can be accomplished, in one of the industries I was associated with involved high net-worth individuals, so it was thought to be quite easy to nickel and dime their accounts without them becoming aware, of course I never did any such thing. But the ‘how to’ was often talked about in the industry, but there was always the fear of anyone worth a few bucks would most likely have an assistant with a keen eye, a detailed oriented   assistant that would be watching every penny of their boss’s purchases, so, those nickels and dimes was not worth, in my view, becoming unemployed and branded a cheat. However, in the public case of Wells Fargo, the clawback involved tens of millions of dollars, claw backing one or two million just may be worth the effort, just kidding, or on the other hand, being referred to as a millionaire cheat, ‘thinking out loud’ may not be so bad after all…at least I will be able eat and live well but not being allowed to enter into the good gracious of my fellow human beings here on earth…may not, again, thinking out loud, be worth it after all it having been said and done…