How Bonus Clawbacks Create Surprise Tax Bills

Lucas and Luna unpack the mechanics of bonus clawbacks—when companies demand repayment of previously paid bonuses. Using the 2024-2025 Citigroup clawback on a $50 million trader payout as a case study, they explain how clawback clauses work, why they are surging in popularity post-SVB and Credit Suisse, and the tax nightmare they create: you might owe tax on money you never got to keep. They walk through the difference between discretionary and contractual clawbacks, the IRS position on repaid compensation, and why high earners in finance and tech need to build a clawback emergency fund. Practical advice for anyone with a bonus-heavy comp package. #BonusClawbacks #Compensation #PayTransparency #Careers #Tax #Finance #Citigroup #ClawbackClauses #IRS #ExecutiveCompensation #RiskManagement #Accounting #SVB #CreditSuisse #Bonuses #TotalCompensation #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo