A deferred bonus is a form of compensation that is promised to an employee but is not paid out immediately. Instead, it is set aside and paid out at a later date, typically after a certain period of time or upon meeting specific performance goals. This type of bonus is often used as an incentive to retain top talent and encourage long-term commitment to a company. It can also serve as a way for companies to manage their cash flow and reward employees for their contributions over time. Deferred bonuses can come in various forms, such as stock options, profit-sharing plans, or retirement benefits. They provide employees with a sense of security and motivation to continue excelling in their roles, while also allowing companies to strategically plan and allocate their resources.