Plans Based on Commissions
• Rewards employees based on their sales volume: • Straight Commission • Combination of Salary plus Commission • Advantages? • Disadvantages?
stock being held decreases.
Restricted Stock Plans
• Gives stock shares, subject to certain restrictions, to participating managers.
Individual Bonuses
• Merit Pay Increase: Reward based on performance but also perpetuated year after year.
• Bonus: Reward offered on a one-time basis for high performance.
year
Incentive Pay Plans
• Most programs tie pay directly to profitability. • Incentives can be rewarded several times per year: • Creates more direct link with pay & performance.
• Opposed to more common annual bonus plans. • Share plans or unit plans: • How do these work?