deferred compensation
Pay received later
Deferred compensation is pay earned now but received later, typically at retirement or termination.
Employers use it to retain talent and provide tax advantages—income isn't taxed until paid out.
Pension plans and stock options are common forms: The executive negotiated a generous deferred compensation package.
Distinguished from regular wages by the delayed payment structure.
- stock optionsContracts to purchase shares
- pensionRetiree's ongoing benefit
- employee benefitsNon-wage workplace compensation
- contractEnforceable written agreement
- 401(k)Tax-advantaged retirement savings account
bonus · employee retention · annuity · golden handcuffs · severance pay · retirement savings · retirement plan · promise · estate planning · succession planning · talent acquisition · performance incentives · compound interest · check · payroll taxes · contract negotiation · employment contracts · vesting
deferred compensationinstant payment
Transaction completed without delay
advance payment · cash in hand · prepayment · upfront payment · signing bonus
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