Year-End Bonus

AAA

DEFINITION of 'Year-End Bonus'

A reward paid to an employee at the end of the year. Many year-end bonuses are tied to performance metrics and the amount can vary depending whether certain milestones are met. Year-end bonuses are usually made up of lump-sum payments used to reward the individual for hard work and dedication.

Sometimes called a "Christmas bonus".

INVESTOPEDIA EXPLAINS 'Year-End Bonus'

On Wall Street, it is common to see top executives and employees of financial firms receive large bonuses at the end of the year. Bonuses fluctuate depending on the economy and the year's performance, but in most years the amount is substantial.

RELATED TERMS
  1. Signing Bonus

    A financial award, often issued in one or two lump-sum payments, ...
  2. Base Pay

    An employee's initial rate of compensation, excluding extra lump ...
  3. Golden Parachute

    Substantial benefits given to a top executive (or top executives) ...
  4. Stock Compensation

    A way corporations use stock options to reward employees. Stock ...
  5. Camouflage Compensation

    Compensation that is granted to upper echelon employees, directors, ...
  6. Performance-Based Compensation

    An incentive-based form of compensation that is reserved for ...
Related Articles
  1. Pages From The Bad CEO Playbook
    Retirement

    Pages From The Bad CEO Playbook

  2. 6 Employment Perks And How To Get Them
    Professionals

    6 Employment Perks And How To Get Them

  3. A Guide To CEO Compensation
    Options & Futures

    A Guide To CEO Compensation

  4. Evaluating Executive Compensation
    Options & Futures

    Evaluating Executive Compensation

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center