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Incentive Fee

   Also found in: Wikipedia 0.01 sec.
Incentive fee
Compensation paid to commodities trading advisers or to any practitioner who achieves above-average returns. Sometimes called performance fee.

Incentive Fee
A fee paid to an asset manager or other investment adviser whose investment decisions perform particularly well. When an asset manager makes money for clients, he/she also makes money for the company for which he/she works. These companies offer incentive fees in order to encourage wise (and profitable) investments. Incentive fees usually come out of the portfolios that do well, rather than out of the company's general funds. They are also called performance fees. See also: Bonus, Manager Universe (Benchmark.)

incentive fee


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Categories: Financial Management, Accountability, Best practices, Contract administration, Contract performance, Contractor payments, Contracts, Cost effectiveness analysis, Cost plus award fee contracts, Cost plus fixed fee contracts, Cost plus incentive fee contracts, Data collection, Evaluation criteria, Federal agencies, Federal procurement, Fees, Funds management, Performance measures, Requirements definition
A 54-page filing with New York's Supreme Court alleges that Merkin received 470 million dollars in management and incentive fees in return for steering "investors, including several prominent charities and non-profits" to Madoff's scheme.
Invariably, programs should embrace an incentive fee strategy that achieves and sustains maximum contractor performance with a measurable value to the government.
 
 
 
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