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Home > QFINANCE Dictionary > Definition of bonus scheme

Definition of

bonus scheme


program for rewarding employees with extra money a form of incentive plan under which a bonus is paid to employees in accordance with rules concerning eligibility, performance targets, time period, and size and form of payments. A bonus plan may apply to some or all employees and may be determined on organization, business unit, or individual performance, or on a combination of these. A bonus payment may be expressed as a percentage of salary or as a flat-rate sum.

Related definitions of "bonus scheme"

Recommended Further Reading (Term count)
  • Executive Rewards: Ensuring That Financial Rewards Match Performance
    by Shaun Tyson
    Effective management of executive rewards resides at the heart of a network of pressures and issues of central relevance to the management of organizational performance. These pressures can be represented diagrammatically to show how stockholder interests and corporate governance issues impact on business performance, objective setting, the motivation of executives, and the position of the organization as an employer in specific labor markets;...
  • This Time It’s Serious: Shareholders and Executive Remuneration
    by Sir Howard Davies
    This article was first published in Quantum magazine.Shareholders, influenced by changing social and political attitudes to high rewards, are finally making their voices heard in protest, and chiefs of previously invulnerable institutions are feeling the heat.

Definitions of ’bonus scheme’ and meaning of ’bonus scheme’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’bonus scheme’ and other financial terms with our online QFINANCE Financial Dictionary.

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