Considered Compensation Sample Clauses

The 'Considered Compensation' clause defines what forms of payment, benefits, or remuneration are included when calculating an employee's total compensation for specific purposes under an agreement. This clause typically outlines which elements—such as base salary, bonuses, commissions, or stock options—are counted and which are excluded, ensuring clarity in situations like severance calculations, retirement benefits, or incentive payouts. Its core function is to prevent disputes by clearly specifying what is and is not considered compensation, thereby ensuring both parties have a mutual understanding of the financial terms involved.