Performance-Based Pay
/ˌpɜːrfɔːrməns beɪst peɪ/
Definitions
- (n.) A compensation system where payment is contingent on meeting or exceeding specific performance criteria or targets.
The company implemented performance-based pay to incentivize higher employee productivity.
Forms
- performance-based pay
Related terms
See also
Commentary
Performance-based pay clauses must clearly define performance metrics 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.