Compensation Glossary

Long-Term Compensation

Long-term compensation is generally any cash compensation paid for work/services from prior to last year per a multi-year contract or other extended pay agreement. Typical examples of long-term compensation include the current year’s cash payouts for the third installment of a five-year incentive plan or current cash paid pursuant to a deferred compensation agreement in which an employee might receive 10% of last year’s bonus this year (and each of the next nine years).