"On-track" or "on-target" earnings (OTE) is a term
What Is The Meaning Of OTE?
/ref> often seen in job advertisements, especially for sales
Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale.
The seller, or the provider of the goods or services, completes a sale in r ...
personnel. It is the expected total pay, if performance matches the expected targets. Actual pay may be higher or lower. The typical pay structure may be composed of a basic salary
A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis.
...
with an additional amount of commission, known together as a "package". The package usually involves a contract between the company and the salesperson that ensures a specific commission percentage, fixed lump sum
A lump sum is a single payment of money, as opposed to a series of payments made over time (such as an annuity).
The United States Department of Housing and Urban Development distinguishes between "price analysis" and "cost analysis" by whether th ...
payment, or a combination of both, provided that the salesperson hits specified sales targets. While all commission plans are unique, often exceeding sales targets results in higher commission rates on sales beyond target for a specific period. Alternatively, on target earnings can refer to an executive pay
Executive compensation is composed of both the financial compensation (executive pay) and other non-financial benefits received by an executive from their employing firm in return for their service. It is typically a mixture of fixed salary, variab ...
schedule contingent upon the achievement of specified goals.
References
Employment compensation
Sales
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