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A simplified version might look like this: DEVELOPMENT TRACKS Individual Contributor 1 Individual Contributor 2 Managerial Track Specialist Track People Manager 1 Specialist 1 People Manager 2 Specialist 2 Senior Manager Senior Specialist Executive Principal/Master Managerial track.

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Figure 2 shows how the pay gap breaks down for four hypothetical companies, each based on an actual case.

At the bottom of payout curves, the broad-market STI threshold payout is, on average, 22% of target, while the average EHP STI threshold payout is just 13% (Figure 2).

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Concept 2: Use a Mix of Financial and Non-Financial Metrics Given the potential volatility of the current financial environment, short-term incentive plans need to be tailored to align executives’ motives with the short-term success of the company, plus position it for future success.

The process of questioning led to the discovery that the purpose was not collectively agreed upon. 2.

Organization Science 26(2): 311–33.

Course Credits WorldatWork Recertification By successfully completing this course you will earn 2 WorldatWork recertification credits.

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