bonus clause

Extra payment provision

A bonus clause is a provision in a contract that specifies additional compensation if certain conditions are met.

Common in employment and athlete contracts, bonus clauses tie extra payment to performance benchmarks, sales targets, or other measurable outcomes: His contract includes a bonus clause for making the playoffs.

Distinguished from base salary or guaranteed money.

Related

milestone · negotiation · deal · salary · earnings · pay bump · reward · trigger · threshold · vesting schedule · agreement · stipulation · provision · golden · parachute · retention · team option · target

Opposites
compensation conditionality

bonus clausebase salary

Guaranteed regular compensation

base pay · flat rate · hourly wage · minimum wage

contractual consequence valence

bonus clausepenalty clause

Agreement's breach cost provision

Family

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Familiarity
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Used worldwide · Timeless · Positive · Rated G