Deferred compensation

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deferred compensation

An arrangement in which a portion of an employee's income is paid out at a date later than income is actually earned. Examples include pensions, retirement plans, and stock options. The primary benefit of most deferred compensation plans is the deferral of tax.

When used in context as an employer's Deferred Compensation Plan, it refers to a contract between employer and employee. Please see Deferred Compensation Plan.

Links

Deferred compensation--what is it?, Bogleheads forum discussion
Deferred Compensation, Bogleheads forum discussion

Definitions of deferred compensation on Google