Investor Glossary-deferred compensationInvestor Glossary-deferred compensationInvestor Glossary-deferred compensationInvestor Glossary-deferred compensationInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Deferred Compensation

The HTML to link to this page
 

Deferred compensation is the portion of an employee's income that is paid out at a date later than when the income was actually earned. Broadly, there are two types of deferred compensation plans: qualified and non-qualified. Non-qualified deferred compensation plans include salary reduction arrangements, bonus deferral plans, supplemental executive retirement plans, and excess benefit plans. Non-qualified deferred compensation plans are not eligible for the tax deferral benefits associated with qualified deferred compensation plans. The benefits of non-qualified deferred compensation plans include aligning employees' incomes with company growth and adding an incentive for employees to stay with a company. Qualified deferred compensation plans include pensions and retirement plans and are eligible for tax deferral benefits. The primary benefit of qualified deferred compensation plans is to allow employees to defer some of their income (as well as the taxes on that income) until retirement.



Rate this deferred compensation definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: inflation, EBITDA, average price per share, current ratio, FTSE, 1035 exchange, LIBOR, annual return, deferred revenue, option premium, 401a, command economy, open position, real GDP, implied volatility, in escrow, quality assurance, cancelled check, dividends payable, covered put, stock split, 1031 exchange, class C shares, required rate of return, ex-dividend, limit order, risk management, Zero Cost Collar, reverse mortgage, minority interest, VIX, deferred tax, Key Rate Duration, margin rate, wholly-owned subsidiary, APR, 144a, diluted share, stock market close, FICO score, ex-dividend date, phantom income, per diem, debt service coverage, balance sheet, retained earnings, irrevocable trust, labor relations, liquidity ratio


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use