Also known as: bonus payments · bonus
Written by attorneys — see sources below.
2 senses
A payment made by a corporation to its current or former directors, officers, employees, or agents under a benefit or incentive plan. The payment compensates individual performance or encourages specific conduct that advances corporate objectives.
A payment made to the owner of a mineral interest in exchange for granting an oil and gas lease. The payment compensates the lessor for the exclusive right to explore and develop the minerals during the lease term.
A payment made by a corporation to its current or former directors, officers, employees, or agents under a benefit or incentive plan. The payment compensates individual performance or encourages specific conduct that advances corporate objectives.
A payment made to the owner of a mineral interest in exchange for granting an oil and gas lease. The payment compensates the lessor for the exclusive right to explore and develop the minerals during the lease term.
Each sense below has its own examples, sources, and questions.
Ridge Aerospace bars engineer Ashley from client demonstrations after internal disagreements. Only engineers who attend and contribute to successful demonstrations receive direct performance bonuses from the company. Ashley loses the opportunity to earn those payments because she can no longer participate.
3 common questions
Yes. When an employer awards a bonus after an employee's death and the employee had no contractual right to it at death, the payment is included in the probate estate under the Restatement rule governing property acquired by the estate after death.
Supporting sources
A performance bonus paid directly to an individual member for personal participation in company activities creates a direct injury that may support a direct action. In contrast, any recovery obtained through a derivative suit belongs exclusively to the LLC and must be remitted to the entity.
Supporting sources
Yes. The Model Business Corporation Act expressly authorizes a corporation to establish share bonus plans and other benefit or incentive plans for directors, officers, employees, and agents.
Supporting sources
Grantor conveys an undivided interest in land while stating that the grantee receives only a royalty. The deed language creates a dispute over whether the grantee also holds the right to receive bonus payments when a new lease is negotiated. The court must determine which of the five mineral-estate attributes passed with the conveyance.
In 1943, George Calvert, owner of a 1/32 mineral interest in a 32,808.5 acre tract of land, deeded a fifty acre, 1/656.17 interest to Capton M. Paul through a document titled "Mineral Deed." The deed's first paragraph granted an undivided fifty acre interest, being an undivided 1/656.17th interest in and to all of the oil, gas and other minerals in, under and that may be produced from the lands. The second paragraph stated that the conveyance is a royalty interest only and that the grantee shall never have any interest in delay or other rentals or revenues from leasing, nor control over leasing or development, which rights are reserved in the grantor. Fuller Trust, the successor-in-interest to the grantee, brought suit against Grantor Calvert's successors, including Chevron, to construe the deed as conveying a royalty interest. Both parties sought summary judgment on the ground that the deed is unambiguous. The trial court denied Fuller Trust's motion and granted Chevron's motion. The court of appeals affirmed the trial court's judgment at 871 S.W.2d 276. The Supreme Court of Texas then granted review under docket number 94-0377, with argument on December 13, 1994.
View case1 common questions
The right to receive bonus payments is one of the five severable rights that comprise a mineral estate, along with the rights to develop, to lease, to receive delay rentals, and to receive royalty payments. A conveyance may transfer some but not all of these rights unless a contrary intent appears.
Supporting sources
…mineral estate is comprised of five severable rights: “1) the right to develop, 2) the right to lease, 3) the right to receive bonus payments, 4) the right to receive delay rentals, and 5) the right to receive royalty payments.” French v. Chevron U.S.A. Inc. , 896 S.W.2d 795, 797 (Tex.1995). The holder of the leasing privilege…