deferred compensation
Definition
An arrangement in which a portion of an employee's income is paid out at a date after which that income is actually earned. Examples of deferred compensation include pensions, retirement plans, and stock options. The primary benefit of most deferred compensation is the deferral of tax.
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Related terms:
457 plan, executive indemnity insurance, phantom stock plan, rabbi trust
'deferred compensation' appears in the definitions of these other terms on BusinessDictionary.com:
deferred compensation pension plan, deferred profit-sharing plan, immediate compensation
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