People

Big investors seek a #MeToo clawback

Some venture capitalists are looking for a way to fine companies hit by harassment scandals

As the #MeToo movement continues to sweep through US corporations, some venture capitalists are pushing a proposal that would make it easier for big investors to extract fines from companies embroiled in such scandals.

Arguing that sexual misconduct cases pose a financial threat to businesses and their shareholders, the group is working to craft a standard clawback clause that could be added to agreements between investors and private equity managers, and between managers and the firms they invest in.

WSJ Logo
Ray Dalio Sells Last Stake in Bridgewater, the Hedge Fund That Made Him a BillionaireExternal link

Ray Dalio Sells Last Stake in Bridgewater, the Hedge Fund That Made Him a Billionaire