There are multiple definitions - click on the translation that matches your context.

Entgeltumwandlung

Substantiv

partial

deferred compensation

phrase

Comparative law notes

Germany

The phrase "deferred compensation" is broader than "Entgeltumwandlung", which literally means "remuneration restructuring", inasmuch as deferred compensation could be used for other programs (e.g., equity participation) besides just a pension scheme. However, the underlying purpose and effect are the same: compensation is reallocated into something other than a paycheck.

Definitions of deferred compensation

English

a term used to describe the payment of part of an employee's income at a later date than usual. Such plans are usually entered into for tax purposes, and include pension schemes and employee stock options etc.

His bonus was $3.3 million, which he took as deferred compensation.