Incentive fee

Incentive Fee
Financial & Investment Dictionary:
Incentive Fee
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INCENTIVE FEE - Applies to fee structures where the amount of the fee that is charged is determined by ...
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Incentive fee
Compensation paid to commodities trading advisers or to any practitioner who achieves above-average returns. Sometimes called performance fee.

incentive fee
compensation for producing above-average results. Incentive fees are common for commodities trading advisers who achieve or top a preset return, as well as for a general partner in a real estate or oil and gas limited partnership.

The incentive fee may be subject to a hurdle rate or high-water mark provision. With the former, the performance fee is paid on only returns in excess of some hurdle rate.

Cost Plus Incentive Fee Contract
A type of cost-plus contract in which the fee is based on either cost savings or performance. It varies according to the level the contractor achieves in meeting such cost or performance criteria.
Critical Path Method ...

incentive fee A fee paid as an incentive to the general partner of a hedge fund or, less frequently,... incentive stock option Abbreviated as ISO, refers to a type of employee stock option which provides...

Cost-Plus-Incentive Fee (CPIF) contracts have a larger fee awarded for contracts which meet or exceed performance targets, including any cost savings.[2] ...

A security that trades in very small volume on a daily basis. See:: Illiquid.
Incentive fee ...

See also: Expense, Compensation, Saving, Values, Illiquid