incentive pay

incentive pay definition - business

incentive pay

A wage or salary arrangement in which additional compensation is awarded for performance that exceeds an established benchmark. For example, employees of a company may be rewarded with a proportion of the firm's profits that exceed a specific amount.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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