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How is Current Compensation defined in a legal contract?

• Current Compensation means all regular pay in the form of wages, salaried income, and commission received by an employee as part of the terms of their employment, but does not include annual bonuses, nor other types of special compensation. Seen in 41 SEC filings.
• Current Compensation means the part of an employee's remuneration that does not include predetermined, set-aside compensation. Seen in 10 SEC filings.
• Current Compensation means the total cash compensation, including wage, salary and overtime earnings, paid to an employee by the [organization] or [affiliates] as part of their employment terms, but does not include all bonus payments, expense allowances and compensation payable in forms other than cash. Seen in 10 SEC filings.
• Current Compensation means the sum of an employee's base salary, annual and quarterly bonuses awarded during the fiscal year preceding when severance benefits are paid. Seen in 7 SEC filings.
• Current Compensation means the higher amount between an employee's highest yearly base salary in the year before termination occurs, or the employee's yearly base salary at any point during the year of termination. Seen in 7 SEC filings.
• Current Compensation means all regular wages, salaries, bonuses, and commissions paid to an employee by a [organization] or a partner organization according to the terms of their employment. Seen in 7 SEC filings.
• Current Compensation means monetary payments made for services rendered, which are paid no later than the fifteenth day of the third calendar month after the conclusion of the [number] the [organization's] taxable year when such services were provided. Seen in 6 SEC filings.
• Current Compensation means the greater of either the base compensation earned by an employee in the fiscal year prior to their termination, or the base compensation for the fiscal year of the employee's termination which includes a 100% bonus the employee could have earned during that year, assuming the achievement of all relevant individual and company targets, milestones and performance criteria. Seen in 6 SEC filings.

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Which definition should you use?

🤔 has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

• Current Compensation means all regular wages, salaries, and commissions, excluding bonuses and special pay, given according to the terms of employment.

Relevant Contract Types

• Employment Contracts
• Consultancy Agreements
• Freelancer Contracts
• Sales and Commission Agreements

Relevant Circumstances

• Protracted negotiations where the details of remuneration need to be outlined specifically.
• Situations where regular payments need to be differentiated from bonuses or special pays.

Relevant Sectors

• Technology industry
• Financial services
• Healthcare
• Education

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Genie Definition 2

• Current Compensation means the base salary and any potential bonuses during the fiscal year prior to termination.

Relevant Contract Types

• Employment Termination Agreements
• Severance Agreements

Relevant Circumstances

• When discussing severance or termination benefits.
• In cases where a termination is imminent or has already taken place.

Relevant Sectors

• Corporate sector
• Non-profit
• Public Sector
• All Sectors

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Genie Definition 3

• Current Compensation means payments for rendered services, received by the third month after the end of the taxable year.

Relevant Contract Types

• Consultancy Agreements
• Freelancer Contracts

Relevant Circumstances

• Negotiations around payment timelines.
• In cases where exact timelines for payments need to be specified.

Relevant Sectors

• Consultancy
• Financial services
• Legal Services

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