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Incentive Compensation

What is Incentive Compensation?

Incentive compensation is a form of payment that rewards employees, often sales reps, for achieving specific goals or objectives. It is often tied to individual or company performance and is designed to motivate employees to work harder and achieve better results. Incentive compensation can take many forms, including bonuses, stock options, profit sharing, and commission-based pay structures.

Although incentive compensation is primarily seen used to compensate sales teams, it’s not uncommon for other roles to earn incentive pay. These include roles in sales operations, customer success, recruiting, and marketing.