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Compensation Dictionary
A COMPILATION OF KEY COMPENSATION TERMS
In an effort to provide our readers with valuable resources, we have put together this dictionary of key compensation terms that will be helpful to anyone in the compensation field. Here you will find all the terms you need to know to have a good grasp on the language of compensation.
The Compensation Dictionary is also available as a PDF.
There is currently 1 name in this directory beginning with the letter W.
WATERFALL STRUCTURE
The order in which a private equity fund pays out distributions after investments have been liquidated. Typically, higher-tiered creditors receive payments first, while the lower-tiered creditors receive payments only after the higher-tiered creditors are paid back in full, in an effort to prioritize the highest-principal loans first because they are also likely the most expensive.