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Pay-for-performance

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Pay for Performance

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What is Pay for Performance?

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Pay for Performance

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Pay for Performance in Medicine: It Doesn't Work

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The Impact of Pay for Performance

A pay-for-performance fee structure, in relation to the investment industry, describes a fee that is paid to a financial advisor or investment manager when their performance returns exceed those of their designated benchmark. The performance fee is generally calculated as a percentage of the investment outperformance gained. The rationale for a pay-for-performance fee is that it provides a low-cost base solution for investors and aligns their interests with investment managers who only get compensated for outstanding performance.
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