What is Deferred Compensation?

Legal Definition
Deferred compensation is an arrangement in which a portion of an employee's income is paid out at a later date after which the income was actually earned. Examples of deferred compensation include pensions, retirement plans, and employee stock options. The primary benefit of most deferred compensation is the deferral of tax to the date(s) at which the employee actually receives the income.
-- Wikipedia
Legal Definition
Any benefits or renumeration paid in the next accounting period. Refer to immediate compensation.