Pay for Performance
/ˈpeɪ fɔr pərˈfɔrməns/
Definitions
- (n.) A compensation system linking employee pay directly to performance outcomes or results, often used in employment contracts and organizational policy.
The company implemented pay for performance to incentivize employees to exceed their targets.
Forms
- pay for performance
Related terms
See also
Commentary
Typically used in employment law and organizational governance, pay for performance plans require clear performance metrics and careful contract drafting to avoid disputes over compensation eligibility.
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.