Business Pitch Dictionary by pitch.dog
Performance, pay & rewards · Specialist

Malus

Also called: downward adjustment

ELI5

Reduction or cancellation of unvested variable compensation before payment.

Used in conversation

“The people plan needs to explain how malus affects roles and decisions.”

Pitch context

You will see “Malus” in organisation plans, workforce reviews, change programmes and people reports when the discussion reaches performance, pay & rewards.

Why it matters: In performance, pay & rewards, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 2

Direct term-level sources and supporting source families.