Create Incentive Compensation Plan Components

Incentive compensation plans contain plan components, which the calculation process uses to compute earnings.

1. Enter primary details.

2. Add performance measures.

3. Define an incentive formula.

4. Add rate tables.

5. Provide payment information.

As shown in this diagram, plan components use the attainment information from associated performance measures in their incentive formula expressions. They also use attainment in the rate dimension input expressions for any associated rate tables.