When Bonuses Become Liabilities

An executive receives a substantial bonus. Two years later, misconduct is uncovered, financial statements are restated, or regulatory breaches emerge.

 Can the company recover the money?

In Indonesia’s banking sector, the Financial Services Authority (Otoritas Jasa Keuangan or OJK) has long addressed this issue through Deferred Variable Remuneration, Malus, and Clawback mechanisms under POJK No. 45/POJK.03/2015.

As governance expectations continue to evolve, the question is no longer whether accountability matters. The question is whether executive compensation structures are designed to support it.

Swipe through for a practical legal perspective on clawback clauses and executive accountability in Indonesia.