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

Typically, the private equity pay model offers lower cash compensation but higher long-term, equity-based compensation.

Toward the latter, bonuses should not be biased based on protected characteristics such as gender, national origin, age, race, religion, pregnancy, disability or genetic information, but they can be based on non-protected characteristics such as job classification, tenure, contribution, merit production, education, training or experience.

;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.

The legislation also permanently exempts vaccine incentives provided during a public health emergency from the definition of “compensation,” including both monetary and nonmonetary incentives, such as additional paid time off.

;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.

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

The Journal of Total Rewards First Quarter 2023 | Volume 32 | No. 1 In this issue: retiree knowledge transfer, Ohio workers’ comp pilot, more ESG metrics in executive comp, long-term care and CalPERS, employee trust for benefits Cover Story Journal of Total Rewards Article Tapping into Retirees to Bolster Knowledge Transfer The knowledge transfer between retirees and their remaining employees offers a unique opportunity to retain knowledge.

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.

Workspan Magazine April-May 2026 In this issue: Culture strategies and audits; a co-CHRO leadership model; job descriptions; fortifying compensation management; employee motivation, retention and promotion; long-term incentive plans; and more.

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.