malus

Definition

The loss or return of performance-related compensation originally paid by an employer to an employee as a result of the discovery of a defect in the performance.

Etymology

From Latin malus, by analogy with bonus (“additional compensation”). Doublet of mal.

Example Sentences

• "When bank fired the loan originator, they recovered the last two years of her bonuses under the malus clause in her contract."
• "The existence of boni and mali for the different risks can be interpreted through the sign of estimated covariances."
• "If the boni and mali do not depend on the frequency of claims, the average bonus-malus coefficient increases with the frequency."

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