deferred compensation

Definitions

An arrangement in which a portion of an employee's income is paid out at a later date, typically after retirement.

A method of compensation where the receipt of payment is postponed to a future period, often for tax-deferral purposes.

Examples

The executive negotiated a generous deferred compensation package as part of her retirement plan.

Many employees prefer deferred compensation because it allows them to lower their current taxable income.

The company's board of directors reviewed the deferred compensation structure to ensure it complied with federal tax regulations.

Synonyms

delayed compensation postponed pay accrued benefits future earnings retirement plan pension scheme vested interest

Antonyms

immediate payment spot salary current wages upfront compensation instant cash present earnings direct pay