Year-End Bonus

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".

BREAKING DOWN '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. Cash Bonus

    A lump sum of money awarded to an employee, either occasionally ...
  3. Bonus

    1. Additional compensation given to an employee above his/her ...
  4. Performance Bonus

    A form of additional compensation paid to an employee or department ...
  5. Bonus Issue

    An offer of free additional shares to existing shareholders. ...
  6. TARP Bonuses

    A buzzword coined by the financial media during the financial ...
Related Articles
  1. Professionals

    3 Reasons Businesses Give Bonuses to Poor Performers

    Learn more how bonuses paid to poorly-performing employees affect a company and why many businesses are still paying out financial rewards to such workers.
  2. Investing

    More Bonuses And Fewer Raises Affect Workers

    Companies are increasingly replacing salary increases with bonuses, much to the detriment of employees.
  3. Entrepreneurship & Small Business

    Raises or Bonuses Better for Small Business Staff?

    Weigh the pros and cons of each and strike the right balance to retain a top-tier staff and a healthy bottom line for your business.
  4. Professionals

    5 Ways to Create a Bonus Structure for Your Small Business

    Understand what goes into a good small business bonus structure. Learn about how a small business can create a bonus structure that attracts employees.
  5. Managing Wealth

    Wealthy Execs Face Tougher Curbs on Bonuses

    The ways of amassing wealth on Wall Street are about to change, thanks to new federal regulations regarding executive bonus payouts.
  6. Trading

    6 Brokers That Will Pay You To Trade With Them

    We review six leading online brokers that are offering cash bonuses for opening a new account.
  7. Trading

    A Guide To CEO Compensation

    Make sure you assess whether a CEO has a stake in doing a good job for you, the shareholder.
  8. Markets

    Morgan Stanley Introduces Four Weeks of Paid Vacation

    In the wake of falling bonus pools and loss of top talent to Silicon Valley, one of Wall Street's biggest names is introducing a paid four-week sabbatical.
  9. Markets

    Wall Street Bonuses Fell 9% in 2015 (BAC, GS)

    The average Wall Street bonus fell 9% in 2015 as market volatility and litigation weighed on the securities industry.
  10. Managing Wealth

    What Drives Investment Banker Salaries

    Do investment bankers make too much money? Are their salaries completely arbitrary or is there some logic behind it?
RELATED FAQS
  1. How do mutual fund managers make money?

    Learn about the compensation structure for fund managers and how investors can obtain information on managers' base salaries ... Read Answer >>
  2. Can I contribute to my company-sponsored 401(k) after the company's year-end but ...

    Unlike IRAs, where contributions can be made for the previous year up to April 15 of the current year, salary deferral contributions ... Read Answer >>
  3. Are credit card rewards considered taxable income by the IRS?

    Learn about when the Internal Revenue Service considers the financial value of gifts received from credit card reward programs ... Read Answer >>
  4. Is there a way to invest money pre-tax to put me back into the lower bracket?

    My promotion at work put me from $87,500 a year to $92,000 a year. With my car allowance it pushes it to $98,000 year. With ... Read Answer >>
  5. What's the average salary of an investment banker?

    Compare average annual salaries of investment bankers based on position. Different levels of the career result in different ... Read Answer >>
  6. What are some tips for getting the most out of my credit card rewards program?

    Get tips to get the most out of a credit card rewards programs and discover what the most important factors are when choosing ... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center