Searching Pondering Equity-Based Long-Term Incentive Plans on page 11

;Lack of alignment with strategic initiatives, such as cross-selling, upselling, or customer retention, which can affect the long-term growth and profitability of the company.; To overcome these challenges, many companies switch from a commission plan to a bonus formula plan, which pays salespeople a fixed percentage of their quota attainment, regardless of how much they sell.

Building the Right Compensation Package In addition to the standard salary and performance bonuses, Canavan said the building blocks should be: retention incentives, which organizations can address through real or “phantom equity” (a type of compensation award that references equity, but does not entitle the recipient to actual ownership in a company); a long-term cash bonus plan; or split-dollar life plan, which allows the sharing of the cost of a premium for a permanent life insurance policy.

President Donald Trump about making alternative assets more accessible in 401(k) plans;; ;Department of Labor amendments regarding alternative assets and cryptocurrency in retirement plans; and,; ;A reduction in Securities and Exchange Commission restrictions on private equity in certain types of funds; … the question of incorporating these types of investments into workplace retirement plans is increasingly on the radar for employers and their total rewards (TR) professionals.

;Administering and Evaluating the Plan: Sales compensation plans should include such factors as base salary ranges, a mix of base salary and incentive earnings and total cash compensation based on achieving measurable business objectives.

The unadjusted pay gap is partially a result of pay equity but even more so, it’s a result of opportunity equity, which includes promotion equity, retention equity and performance equity.

In terms of how to approach determining compensation, no single solution for every organization, but purely market-based structures should be abandoned.

A complete evaluation is vital to the incentive plan’s design process to get this balance right.

David Glasgow, Executive Director, Meltzer Center for Diversity, Inclusion and Belonging, NYU , Workspan Magazine article; For Everyone AI Can Reduce Bias in Pay Decisions — If It Doesn’t Embed Them , Workspan Daily article;Are DEI Metrics in Executive Incentive Plans Gone for Good?

The current race for talent has created pay inequities between newly hired and long-term experienced employees and between subordinates and their supervisors.

Merit Matrix: Budget Distribution Projection Save A structured approach to merit increase planning is essential to create consistent, clear merit increase decisions.