HomeDefinitionsCompareDebt Incentive feeThe financial definition for Incentive fee:Compensation paid to commodities trading advisers or to any practitioner who achieves above-average returns. Sometimes called performance fee. Similar MatchesAgency incentive arrangementAgency incentive arrangementA means of compensating the broker of a program trade using benchmark prices for issues to be traded in determining commissions or fees. Incentive Stock Option (ISO)Incentive Stock Option (ISO)An Option that has met certain tax requirements entitling the optionee to favorable tax treatment. Such an option is free from regular tax at the date of grant and the date of exercise (when a non-qualified option would become taxable). If two holding period tests are met (two years between grant date and sale date and one year between the exercise date and sale date), the profit on the option qualifies as a long term capital gain rather than ordinary income. If the holding periods are not met, there has been a "disqualifying disposition". Click to compare definitions of Incentive fee Click to view definitions beginning in |