Definition from Wiktionary, the free dictionary
earnout (plural earnouts)
- (business, finance) A formula by which the management of a company earns a share of the company's share capital by achieving results above pre-determined levels.
2007 October 18, Brad Stone, “EBay Reports 3rd-Quarter Growth, With Some Blemishes”, New York Times:
- The earnout was definitely getting in the way of running Skype the way we wanted to run it.