What is On-target earnings (OTE)?

Whether you're a beginner or an expert, you will find this Glossary useful.

On-target earnings refers to an employee's pay structure made of basic salary and the additional variable component such as commission as their compensation.

what-is-on-target-earnings-ote

On-target earnings definition (OTE)

On-target earnings refers to an employee's pay structure made of basic salary and the additional variable component such as commission as their compensation. Most commonly find in sales it involves a contract between the company and the sales person that ensures a specific commission percentage. It can also refer to an executive pay schedule contingent upon the achievement of specified goals.


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