Payment In-Kind - PIK

Payment In-Kind - PIK

The use of a good or service as payment, instead of cash. Also known as "paid in-kind."

Notes:

A good example is a farmhand who is paid room and board for helping out on the farm instead of earning wages.

Another example is the use of securities instead of cash as a deposit into a retirement savings plan.

See also: Distribution In-Kind, PIK Bond