above-the-line

Advanced 👥 Human Resources

Definition

Compensation components included in base salary calculations, as opposed to 'below-the-line' benefits and perks. It's the money that counts for calculating everything from bonuses to retirement contributions—the stuff that actually matters.

Example Usage

The equity grant is below-the-line, so it won't affect your bonus calculation, even though it's worth more than your salary.

Origin

Accounting terminology from financial reporting, adapted to compensation discussions

Fun Fact

Tech companies pioneered moving massive compensation below-the-line through stock options, allowing them to advertise low salaries while paying employees millions.

Source: Compensation accounting terminology

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