Incumbent

AAA

DEFINITION of 'Incumbent'

An individual that is responsible for a specific office within a corporation or government position. This person has an obligation to the position or office he/she holds. All incumbents of an organization, such as directors and officers, are listed on an incumbency certificate. This is an official or regime currently holding office or a post. For example, in politics, "The incumbent governor was defeated in the elections."

INVESTOPEDIA EXPLAINS 'Incumbent'

This term is also used in the form of an "obligation." For example, "It is incumbent for the President to sign the new health care policy in order to meet the nations' current health care needs."


Also referred to as a company that is powerful and has a large amount of market share, as in, "the dominant incumbent software company." In business, the incumbent is typically the largest player in a given industry.

RELATED TERMS
  1. Chief Executive Officer - CEO

    The highest ranking executive in a company whose main responsibilities ...
  2. Chief Financial Officer - CFO

    The senior manager responsible for overseeing the financial activities ...
  3. Corporate Cannibalism

    An act of self-infringement upon market share by corporations ...
  4. Corporation

    A legal entity that is separate and distinct from its owners. ...
  5. Incumbency Certificate

    An official document that lists the names of incumbent directors ...
  6. Lean Six Sigma

    Lean Six Sigma is a managerial approach that combines Six Sigma ...
Related Articles
  1. The Basics Of Corporate Structure
    Investing Basics

    The Basics Of Corporate Structure

  2. Evaluating A Company's Management
    Active Trading Fundamentals

    Evaluating A Company's Management

  3. A Guide To CEO Compensation
    Options & Futures

    A Guide To CEO Compensation

  4. Get Tough On Management Puff
    Markets

    Get Tough On Management Puff

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center