There are five factors to consider when designing an incentive pay program:

1) Whether to base the plan on group or individual performance;

2) The level of risk employees will be willing to accept in their overall compensation package;

3) Whether incentive pay should replace or complement traditional pay;

4) The criteria by which performance should be judged; and

5) The time horizon for goals--long term, short term or a combination of both.

If you were responsible for implementing an incentive-based program; how would you rank order the five factors (from greatest importance to least importance) and why?