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Q&A Forum

How effective is incentive compensation?

Carol Johnson's Profile

What have you and your company found to work best when offering incentive compensation? What hasn't worked?


Ernie Humphrey CTP
Title: VP, Thought Leadership
Company: Stampli
LinkedIn Profile
(VP, Thought Leadership, Stampli) |

Carol, I have moderated a few webinars for Proformative on this topic. You might find the webinar recordings useful:The Science of Incentive Compensation Programs: The DNA of What Works (, and Achieving Growth and Profitability through Better Compensation Planning (

Also, I contributed a blog, Incentive Compensation: The Anatomy of Competitive Advantage ( based on one of these webinars that may also offer a bit of insight.

Mark Matheny
Title: VP - FInancial Planning and Analysis
Company: Novolex (formerly Hilex Poly)
(VP - FInancial Planning and Analysis, Novolex (formerly Hilex Poly)) |

Taking the best of various companies' plans I have been involved with: One set of goals for all employees that is available on a consistent basis. EBITDA, for example. (Individual performance is a separate measurement that impacts merit increase, not incentive.) Uncapped so there is a desire to keep driving improvement. Consistent plan for a number of years rather than changing the metric every year. (Base may change, but metric is consistent.)


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