incentive fee
noun[C]
FINANCEukusmoneypaidto apersonorcompanythatmanagesinvestmentstoencouragethem to make as muchprofitaspossible:
Thebankwasentitledto anincentivefeeof 3% of anyincreaseinofferprice.
Theaveragehedgefundincentivefeehasdipped1% in the lastyear.