Compensation Structure
/ˌkɒmpənˈseɪʃən ˈstrʌktʃər/
Definitions
- (n.) A legal framework or arrangement detailing how compensation is calculated, structured, and awarded in employment, contract, or settlement contexts.
The compensation structure outlined in the contract ensures bonuses are paid based on performance metrics.
Forms
- compensation structure
- compensation structures
Related terms
See also
Commentary
In legal drafting, clearly defining the compensation structure helps avoid disputes over payment terms and ensures enforceability.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.