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Overview of Compensation

Q: Is it possible that an incentive plan was good during robust economic times, but isn’t good when the economy is in serious recession, like now?

A: Yes. If the plan is inherently well designed, the big change that’s required is to reset performance objectives, particularly quantitative ones. These need to be realistic to avoid setting up employees for failure. Nothing is more demotivating than unattainable targets. The challenge is determining what’s realistic!

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