Glossary

Accruals are adjustments made to financial statements to recognize revenue or expenses that have been earned or incurred but have not yet been recorded.

At-risk pay is additional money that salespeople can earn based on their performance. It's like a bonus or variable pay that depends on whether they meet or exceed their sales goals.

A clawback is a contractual provision that allows one party to recover previously disbursed compensation or benefits from the other party.

A commission override is an additional sales commission or bonus given to managers based on the sales performance of their team.

Explore essential compensation terms and definitions. Learn about salary structures, benefits, incentives, and rewards that shape modern employee pay packages.

A gross margin commission plan is a type of compensation structure used to incentivize salespeople to maximize the profitability of their sales.

Learn more about a non-recoverable draw, the difference between recoverable and non-recoverable draws, examples of a non-recoverable draw, and more.

Pay mix is the combination of different types of compensation that make up an employee's total pay package, including base salary, bonuses, commissions, stock options, and other benefits.

A recoverable draw is a type of advance payment made by a company to a commissioned employee. This is done so that the employee can cover for their basic expenses.

Residual commission is a type of compensation system that rewards salespeople for the long-term value of the customers they bring to the organization.

A sales accelerator is a compensation structure that incentivizes salespeople to exceed their sales targets by increasing the commission rate as they sell more.

A sales bonus is a financial incentive or reward given to sales representatives or employees based on their individual or team performance in achieving specific sales targets or objectives.

Sales kickers or sales accelerators refer to specific incentives or bonuses designed to motivate and reward salespeople for achieving sales targets or driving accelerated revenue growth.

Shadow accounting in sales compensation refers to the practice of maintaining a separate and unofficial record-keeping system to track and calculate commissions or bonuses for salespeople.

Spiffs, acronym for "sales performance incentive funds”, also called spif or spiv are a powerful tool in sales organizations that go beyond traditional commission structures.

Straight commission is a type of compensation arrangement where an employee or salesperson is paid a commission percentage of the total sales they generate.