The distribution of profits to management – as individuals or as a higher-level, often bank-determined asset management company – at a capital management company. As a rule, a corresponding payment is not distributed until the hurdle rate, i.e., the contractually defined payment to the fund investors, has been exceeded. This triggers a strong incentive on management to generate profits as far above the hurdle rate as possible. – See base compensation, bonus.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/
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