Compensation and Benefits Management

7.

Variable Pay and Incentive Design

7.1.

Short-Term Incentive Plans

7.1.1.

Individual Incentives

7.1.1.1.

Piece-Rate Systems

7.1.1.1.1.

Straight Piece-Rate

7.1.1.1.2.

Differential Piece-Rate

7.1.1.1.3.

Quality Considerations

7.1.1.2.

Commission Plans

7.1.1.2.1.

Commission Structures

7.1.1.2.2.

7.1.1.2.3.

Territory Management

7.1.1.3.

Individual Bonus Plans

7.1.1.3.1.

Performance Metrics

7.1.1.3.2.

Payout Formulas

7.1.1.3.3.

Discretionary Elements

7.1.2.

Team-Based Incentives

7.1.2.1.

Team Definition

7.1.2.2.

Performance Measures

7.1.2.3.

Payout Distribution

7.1.2.4.

7.1.3.

Organizational Incentives

7.1.3.1.

7.1.3.1.1.

Plan Design Elements

7.1.3.1.2.

Distribution Methods

7.1.3.1.3.

Tax Implications

7.1.3.2.

7.1.3.2.1.

7.1.3.2.2.

7.1.3.2.3.

Improshare Plans

7.1.3.2.4.

Custom Formulas

7.2.

Long-Term Incentive Plans

7.2.1.

Stock-Based Compensation

7.2.1.1.

7.2.1.1.1.

Non-Qualified Options

7.2.1.1.2.

Incentive Stock Options

7.2.1.1.3.

7.2.1.1.4.

Vesting Schedules

7.2.1.2.

Restricted Stock

7.2.1.2.1.

Time-Based Vesting

7.2.1.2.2.

Performance-Based Vesting

7.2.1.2.3.

7.2.1.3.

Stock Appreciation Rights

7.2.1.4.

Employee Stock Purchase Plans

7.2.2.

Cash-Based Long-Term Incentives

7.2.2.1.

Performance Units

7.2.2.2.

7.2.2.3.

Long-Term Cash Awards

7.3.

Sales Compensation

7.3.1.

Sales Role Analysis

7.3.2.

Compensation Mix

7.3.3.

Territory Design

7.3.4.

7.3.5.

Commission Structures

7.3.6.

Sales Contest Design

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8. Executive Compensation