University of Minnesota Law School Scholarship Repository Minnesota Law Review 2009 Clawbacks: Prospective Contract Measures in an Era of Excessive Executive Compensation and Ponzi Schemes Miriam A. Cherry Jarrod Wong Follow this and additional works at: https://scholarship.law.umn.edu/mlr Part of the Law Commons Recommended Citation Cherry, Miriam A. and Wong, Jarrod, "Clawbacks: Prospective Contract Measures in an Era of Excessive Executive Compensation and Ponzi Schemes" (2009). Minnesota Law Review. 484. https://scholarship.law.umn.edu/mlr/484 This Article is brought to you for free and open access by the University of Minnesota Law School. It has been accepted for inclusion in Minnesota Law Review collection by an authorized administrator of the Scholarship Repository. For more information, please contact
[email protected]. Article Clawbacks: Prospective Contract Measures in an Era of Excessive Executive Compensation and Ponzi Schemes Miriam A. Cherryt and JarrodWongtt INTRODUCTION Months after insurance giant American International Group (AIG) faltered and the federal government provided fi- nancial assistance to keep the company afloat,' executive com- pensation and bonus practices at the company came under scrutiny.2 Taxpayers balked when evidence came to light that t Miriam A. Cherry, Associate Professor of Law, University of the Pacif- ic, McGeorge School of Law; B.A., 1996, Dartmouth College; J.D., 1999, Har- vard Law School. tt Jarrod Wong, Assistant Professor of Law, University of the Pacific, McGeorge School of Law; J.D., University of California at Berkeley (Boalt Hall), 1999; LL.M., University of Chicago, 1996; B.A. (Law), Cambridge Uni- versity, 1995. The authors wish to acknowledge Afra Afsharipour, Robert Bar- tlett, Gerald Caplan, Susan D.