deferred compensation

deferred compensation definition - legal

n

Compen-sation that is paid to an employee at a time later than the one at which it was earned, with the tax on that compensation deferred as well.  Often in the form of stock options in the employer corporation.

Webster's New World Law Dictionary Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.

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