Understanding On-Target Earnings, and a Simple Way to Calculate Them

As an executive recruiter and talent expert, I often get questions from hiring managers about “on-target” or “on-track” earnings, also known as OTE. The OTE metricis used to provide a realistic forecast of what the total compensation of a particular position should be when reasonable performance targets are achieved. For a sales role, it is usually the sum of base salary plus projected likely commissions from sales. For an …


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