Annual Target Compensation

Total Target Compensation: A Measure of Company Philosophy

Introduction

Total target compensation (TTC) is a metric that reflects a company's philosophy towards employee compensation. It is the sum of an employee's base salary, target bonus, and other forms of compensation that are tied to performance.

What is included in TTC?

TTC typically includes the following elements: *

Base salary *

Target bonus *

Stock options *

Other performance-based pay

How TTC is used

TTC is used to attract and retain top talent. It is also used to motivate employees to perform at a high level. By linking compensation to performance, companies can create a culture of accountability and reward excellence.

Benefits of TTC

There are several benefits to using TTC, including: *

It can help to attract and retain top talent. *

It can motivate employees to perform at a high level. *

It can help to create a culture of accountability and reward excellence.

Challenges of TTC

There are also some challenges to using TTC, including: *

It can be difficult to design a TTC program that is fair and equitable. *

It can be difficult to administer a TTC program effectively. *

It can be expensive to implement a TTC program. Overall, TTC is a valuable tool that can be used to attract and retain top talent, motivate employees to perform at a high level, and create a culture of accountability and reward excellence. However, it is important to be aware of the challenges of TTC before implementing a program.