Game On? Two Incentive Metrics That Encourage Inaccuracy

Posted by Jonathan Ezer on Mon, Apr 08, 2013

One of the most important decisions when designing a compensation plan is choice of metric. Booked value, invoiced value, shipped value, recognized revenue or gross profit? At ZS, we have seen comp plans based on all of the above. Decide wrong, and your comp plan might be easy to game.


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