# Hurdle rate (also used in German; hurdle = a framework to be leaped over in racing)

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- Post ID: 594884
- Modified: 2023-07-25T20:59:58+00:00
- Language: en

## Definition

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: 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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