Business Pitch Dictionary by pitch.dog
Performance, pay & rewards · Working

Short-term incentive

Also called: STI

ELI5

Variable compensation tied to results over a relatively short period.

Used in conversation

“Can we test the claim about short-term incentive against employee data and lived experience?”

Pitch context

You will see “Short-term incentive” 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.