On-target earnings

On-target earnings

"On-track" or "on-target" earnings (OTE) is a term often seen in job advertisements, especially for sales personnel. The typical pay structure may be composed of a basic salary with an additional amount of commission. The package usually involves a contract between the company and the sales person that ensures a specific commission percentage, fixed lump payment, or a combination of both, provided that the salesperson hits specified sales targets. While all commission plans are unique, it is not uncommon that exceeding sales targets results in higher commission rates on sales beyond target for a specific period.

Alternatively, on target earnings can refer to an executive pay schedule contingent upon the achievement of specified goals.[1]


References

  1. ^ SEC Info - Silicon Graphics Inc - 10-Q - For 12/24/04 - EX-10.6



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