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Year-End Bonus

Source: Investopedia
This Article has been Edited for Accessibility

Year-End Bonus

What is 'Year-End Bonus'

A reward paid to an employee at the end of the year. Many year-end bonuses are tied to performance metrics and the amount can vary depending whether certain milestones are met. Year-end bonuses are usually made up of lump-sum payments used to reward the individual for hard work and dedication.

Explaining 'Year-End Bonus'

On Wall Street, it is common to see top executives and employees of financial firms receive large bonuses at the end of the year. Bonuses fluctuate depending on the economy and the year's performance, but in most years the amount is substantial.


Additional Resources

  1. Bonuses And Employment In Japan [scholar.harvard.edu]
  2. Effort Or Timing: The Effect Of Lump-sum Bonuses [hbs.edu]
  3. Department Of Economics [umass.edu]
  4. The Framing Of Financial Windfalls And Implications For Public Policy [web.missouri.edu]
  5. Accounting &economi [fisher.osu.edu]
  6. Incentive Pay (pay For Performance) [nature.berkeley.edu]
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WCAG 2.0

Section 508