earnout means 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. Lexicurio rates it Sui generis — a strength score of 95 out of 100.
Etymology
From earn + out.
noun
- 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.“The earnout was definitely getting in the way of running Skype the way we wanted to run it.”