Audit a Plan for Line of Sight and Controllability
Audit compensation measures for line of sight, controllability, timing, and measurement quality.
Audit a global account manager plan that pays 50 percent of variable incentive on regional EBITDA. A strong individual pay measure has line of sight, controllability, timely feedback, clean data, and acceptable gaming risk. The common trap is promoting a strategic finance metric into seller pay even when the seller cannot influence most drivers. Influence Seller can influence expansion scope and discount discipline, but not delivery cost, currency, or regional overhead. The metric is only partly controllable, so it should not dominate individual variable pay. Timing EBITDA closes after finance adjustments, often weeks after the selling behavior. Delayed feedback weakens…
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in