Performance, pay & rewards · Core

Sales incentive plan

Also called: SIP

ELI5

A plan defining sales targets, measures and variable compensation.

Used in conversation

“The announcement should not get ahead of the agreed process for sales incentive plan.”

Pitch context

You will see “Sales incentive plan” in organisation plans, workforce reviews, change programmes and people reports when the discussion reaches performance, pay & rewards.

Why it matters: In performance, pay & rewards, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 2

Direct term-level sources and supporting source families.

U.S. Bureau of Labor Statistics — BLS GlossaryDirect source · primary · checked 2026-08-16
OECD — G20/OECD Principles of Corporate Governance 2023Direct source · institutional · checked 2026-08-16