A COMPILATION OF KEY COMPENSATION TERMS
In an effort to provide our readers with valuable resources, we have put together this dictionary of key compensation terms that will be helpful to anyone in the compensation field. Here you will find all the terms you need to know to have a good grasp on the language of compensation.
The Compensation Dictionary is also available as a PDF.
There are currently 3 names in this directory beginning with the letter N.
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NET PROFITS INTEREST
The proportion of net profits paid out to particular investors or employees according to theirpercentage stake in the company.
An employee that is not exempt from the Fair Labor Standards Act (FLSA) requirements and isentitled to receive overtime pay of at least one-and-a-half times their hourly rate when for anyhours worked beyond 40 in a given week.
NON-QUALIFIED DEFERRED COMPENSATION
A type of deferred compensation also called an NQDC plan or a 409A plan that is not protectedby the Employee Retirement Income Security Act (ERISA) and could, therefore, put the funds atrisk if the company holding the employee’s NQDC declares bankruptcy or is sued.