Prestandavinster

Prestandavinster is a term used in management and corporate finance to denote incremental profits attributed to performance improvements that exceed predefined benchmarks. It is a neologism primarily found in Nordic management literature, combining prestanda (performance) and vinster (profits). The concept distinguishes profits that arise from exceptional performance from baseline earnings generated by normal operations.

In incentive design, prestandavinster refers to the portion of gains that results from exceeding performance thresholds, such as productivity, quality, or customer satisfaction targets. When benchmarks are met or surpassed, an additional value—through bonuses, profit sharing, or elevated equity value—qualifies as prestandavinster. This framing emphasizes attribution: not all profits are due to performance, but only the excess above the baseline.

Applications span manufacturing, software development, energy, and public-sector contracting, where performance-based contracts and incentive schemes are common. Proponents argue that focusing on prestandavinster aligns incentives with value creation and motivates sustained improvements. Critics caution that measurement can be difficult, metrics may be gamed, and a focus on short-term performance can undermine long-term value.

See also:

- Performance-based pay

- Incentive compensation

- Profit sharing

- Key performance indicators

- Value-based management