When designing a large group incentive plan, which is not one of the most commonly used financial metrics?

revenue

EBITDA

performance

earnings per share

operating income

If you want to foster the belief that good performance leads to more pay, you should implement a variable pay plan:

based on objective standards and measurements

that relates the pay of the individual to groups or other larger units

that creates the maximum competitive atmosphere

What is the best way to determine the amount of pay to place at risk?

design an effective plan that produces fair results

analyze the external labor market to determine a competitive base, incentive, and total cash

compensation at target

use a formula that motivates and engages eligible employees

The major requirement of establishing performance standards is to:

make them easy enough for everyone to accomplish

define the value of a unit of production or performance

encourage cooperation

make a profit for the company