Performance Bonus

A form of additional compensation paid to an employee or department as a reward for achieving specific goals or hitting predetermined targets. A performance bonus is compensation beyond normal wages and is typically awarded after a performance appraisal and analysis of projects completed by the employee over a specific period of time.

Not all companies offer bonus plans, and those that do often define the maximum amount that an employee can receive for exemplary performance. Companies that use an appraisal or employee review process may set a score threshold that an employee will have to meet or exceed in order to be considered. Because this bonus is given for performance above expectations, employees are not automatically entitled to it.

Performance bonuses may be given to an entire team or department if, for example, specific sales figures were met, or if the actions of that group were deemed to have been exceptional.

Investment dictionary. . 2012.

Look at other dictionaries:

  • performance bonus — ➔ bonus * * * performance bonus UK US noun [C] ► HR an extra amount of money paid to an employee who has done their job well, helped increase sales or profits, etc.: »His contribution to the sales department was rewarded with a £7,000 performance …   Financial and business terms

  • bonus — bo‧nus [ˈbəʊnəs ǁ ˈboʊ ] noun [countable] 1. HUMAN RESOURCES an extra amount of money added to an employee s wages, usually as a reward for doing difficult or good work: • The bonus is discretionary but linked to performance. • The car company is …   Financial and business terms

  • bonus — I noun additive, benefit, boni, boon, bounty, dividend, donation, extra, gift, gratuity, honorarium, incentive, perquisites, pourboire, premium, prime, reward, something over and above, surplus, surplusage, tip associated concepts: bonus stock II …   Law dictionary

  • performance-related — perˈformance reˌlated adjective HUMAN RESOURCES performance related payments, benefit S etc are ones that increase when your work improves or becomes more productive and decrease if the opposite happens: • Workers at most gold mines will receive… …   Financial and business terms

  • Performance and Cocktails — Album par Stereophonics Sortie 8 mars 1999 Enregistrement Real World Studios (Bath) Parkgate Studios (Sussex) Rockfield Studios (Monmouth) Durée 50:55 Genre …   Wikipédia en Français

  • bonus — ► NOUN 1) a sum of money added seasonally to a person s wages for good performance. 2) Brit. an extra dividend or issue paid to shareholders. 3) an unexpected and welcome event. ORIGIN Latin, good …   English terms dictionary

  • bonus — /boh neuhs/, n., pl. bonuses. 1. something given or paid over and above what is due. 2. a sum of money granted or given to an employee, a returned soldier, etc., in addition to regular pay, usually in appreciation for work done, length of service …   Universalium

  • Bonus-Malus — The term bonus malus (Latin for good bad) is used for a number of business arrangements which alternately reward (bonus) or penalize (malus). It is used, for example, in the call center and insurance industries. Contents 1 Call centers 2… …   Wikipedia

  • bonus — bo•nus [[t]ˈboʊ nəs[/t]] n. pl. nus•es 1) something given or paid over and above what is due 2) bus a sum of money given in addition to regular pay, usu. for outstanding work 3) a sum of money paid by a state or federal government to a veteran… …   From formal English to slang

  • bonus — noun 1 money added to salary, etc. ADJECTIVE ▪ big, huge, large ▪ extra, special ▪ cash ▪ annual …   Collocations dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.