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Tag: IC plan design

design incentive payout curve
IC plan design

How to design your incentive payout curve?

A traditional incentive payout curve delivers different payout amounts for performance between minimum (threshold) level of performance and excellence (“superior” or “stretch”) level of performance. Usually, a curve is designed with additional elements such as threshold, target slope, excellent slopes and Cap to pay out 100% of an employee’s incentive opportunity on achieving the target. This article walks you through on ways of accounting these elements while designing your payout curve right.

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