Incentive Pay

/ɪnˈsɛntɪv peɪ/

Definitions

  1. (n.) Additional compensation awarded to motivate employees to achieve specific performance targets.
    The company offered incentive pay to sales staff who exceeded their quarterly goals.

Forms

  • incentive pay

Commentary

In legal drafting, clearly specify the conditions and metrics triggering incentive pay to avoid disputes over entitlement.

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.

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