A Compensation Adviser
As described so far in this chapter, compensation plan design includes decisions regarding the compensation level and mix (salary versus incentive), the measures of performance, and performance-payout relationships. Designing a good plan is a challenge. However, implementing a new plan is even more challenging. This section provides advice on how to implement successfully in a number of common situations.
| Payment Schedule | Cumulative Payment |
|---|---|
| First-quarter payment | 15% of annualized incentive payment based on firstquarter results. |
| Second-quarter payment | 35% of annualized incentive payment based on firstand second-quarter results. |
| Third-quarter payment | 60% of annualized ... |
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