The distribution of profits first to investors before management or other contractually entitled parties – often also the workforce through a bonus – share in the profits of a company or fund; also translated into German as Auszahlungshürde (hurdle rate). – According to IAS, the return that must be earned to cover the cost of capital; also translated into German as kalkulatorische Grundverzinsung. – A pre-determined benchmark rate of return from an engagement, also translated as minimum return and basic return. – See stock options, carried interest, hedge funds, profitability, executive compensation.
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: firstname.lastname@example.org