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Incentive Compensation Services

Incentive Plan Audit

Our incentive compensation plan audit service provides a review of your existing incentive plans. We evaluate how effectively your plans align with your strategic business objectives and identify areas of misalignment or underperformance.

If you require an expert to review your plan documents and determine if it follow best practices or if any significant flaws need improvement, this quick and efficient service is for you. The incentive audit will evaluate various areas such as:

The incentive audit will evaluate various areas such as:

Is the salary incentive mix appropriate for each type of sales role?
Are the performance measures clear, objective, and aligned with job responsibilities and sales strategy?
Are there too many or too few performance measures?
Is the incentive form (e.g., commission or bonus) appropriate, given the role, the lumpiness of the data, the length of the sales cycle, etc.?
Are the detailed incentive mechanics designed to deliver a motivational degree of payout dispersion while managing overpayment risk?
Are the mechanics simple and rational?
Are the rules around the timing of sales credit and timing of measurement and payment optimal?
Is the overall design of the plan in line with those of companies in the same industry or situation?
Are the terms and conditions governing the plan in line with common practice?
Does the plan document fulfill its roles as:
  • The definitive and complete reference to the plans
  • A communication document to build excitement and loyalty and link the plan to the job and the financial and strategic objectives of the company
  • A legal document

After reviewing the plan, we prepare a brief report identifying the plan's strengths and opportunities for short- and longer-term improvement. In presenting the incentive compensation plan audit report, we explain the rationale for our opinions.