Words / D / Business

deferred compensation

noun/dɪˌfɜːd ˌkɒmpenˈseɪʃən/

C1CEFR level
70/100Rarity: rare
TechnicalRegister

Pay withheld until a later date to encourage retention and long-term performance.

Half the bonus came as deferred compensation, vesting only if the executive stayed a further three years.

Topic: Economics in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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