Advancing the Dialogue: Market-Based Framework for AdjustmentsZoom inDownload PDF
Today’s highly uncertain market presents a myriad of challenges when it comes to goal-setting for incentive plans. Over the course of a performance cycle, companies may find that the volatile operating environment may present a variety of unforeseen “headwinds” or “tailwinds” that make the established goals either too challenging or too easy. In this article we explore a market-based framework to automatically adjust plan targets on an “after-the-fact” basis if it is determined that the actual operating environment deviated significantly from the company’s original budgeting and planning assumptions. Read the entire article (PDF) written by Seymour Burchman and Mark Emanuel.