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Home > QFINANCE Dictionary > Definition of cash bonus

Definition of

cash bonus

Stockholding & Investments

extra dividend payment an unscheduled dividend that a company declares because of unexpected income

Recommended Further Reading (Term count)
  • Balancing Senior Management Compensation Arrangements with Shareholders’ Interests
    by Henrik Cronqvist
    The board of directors, and specifically the compensation committee (or remuneration committee), has the challenging task of designing a compensation structure for the chief executive officer (CEO) and other senior managers that balances their interests with those of the shareholders. The general idea is to make an executive’s pay sensitive to the value created for the firm’s shareholders. In this way, everyone shares the common goal of...
  • Making It Count: Independent Nonexecutive Directors
    by Brandon Davies
    This article was first published in Quantum magazine.The inability of independent nonexecutive directors (INEDs) to rein in banks’ excesses has been highlighted in the wake of the financial crisis. Brandon Davies, an INED himself at Gatehouse Bank, examines whether proposed reforms to strengthen their role go far enough.
  • Understanding the Financial Aspects of Employing People
    This checklist examines the various financial aspects of hiring staff and their implications for a company.
cash bonus - Related Articles
  • Balancing Senior Management Compensation Arrangements with Shareholders’ Interests

    Best Practice

    In contrast to base salary and perks, annual cash bonuses are conditional on short-term financial or nonfinancial goals being met by the firm or individual senior managers. Executives’ bonuses, other than for the CEO should be based on their particular business unit’s performance, though a part may be based on overall firm performance or cooperation among executives managing different business units
    By Henrik Cronqvist


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

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