Deferred Compensation
/dɪˈfɜrd kɒmpənˈseɪʃən/
Definitions
- (n.) An arrangement in which an employee receives compensation at a later date than when it is earned, often used for tax or retirement benefits.
The executive received deferred compensation as part of his retirement package.
Forms
- deferred compensation
- deferred compensations
Related terms
See also
Commentary
Deferred compensation agreements must carefully specify timing and conditions to avoid unfavorable tax treatment.
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.