We will establish effective Incentive Plan Designs which provide:
Why create incentive plans?
- A motivational component of total cash.
- Variable pay which allows companies to spend compensation dollars only when profitability is attained.
- An incentive plan document ensures clear communication between managers, employees and the controller on what factors determine payout.
- Target levels represent measures which are reasonably attained and understandable in order to be effective.
- “Line of sight” by the employee is critical for success.
- Target pay levels are aligned with market sources.