Incentive

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1. Motivation.

A potential benefit that motivates or encourages particular actions or omissions.

Incentives are usually - but not always - financial in nature.


"[Identified Staff]'s remuneration [should be] consistent with sound and effective risk management and provide an incentive for prudent and sustainable risk taking..."

(The Treasurers Wiki - Identified Staff.)


2. Tax.

Abbreviation for a tax incentive.


3. Employees - senior employees - remuneration.

Part of employee remuneration, especially senior employee remuneration, generally designed to motivate both:

  • Meeting performance targets; and
  • Staying with the employer.


These employee incentives are often in the form of shares, share options, cash or other valuable assets linked with achieving performance targets.


"In employee compensation, delaying the vesting of options provides an incentive for the employee to stay with the same employer."

(The Treasurers Wiki - Vesting.)


See also