Meaning & use

Nondiscretionary

adjective·Academic

Last updated

Not subject to individual choice or judgment; fixed by rule, policy, or contract.

See it in a sentence

The pension fund managers followed a nondiscretionary investment strategy that left no room for personal judgment calls.

Employees receive a nondiscretionary bonus each quarter based strictly on preset performance formulas.

A note on using this word

Common in finance and law, where it distinguishes automatic, rule-based decisions from ones left to an individual's discretion.

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