Consider a salesperson that has reached his bonus cap three months before fiscal year-end. Any achievement after that is not only unrewarded, but is actually penalized in the sense of creating higher future performance expectations and targets.
Entries in stretch goals (5)
When Wells Fargo imposed a target of eight accounts per customer on its branches, the bank created an aspirational goal. Cross-selling is a proven method of encouraging growth and maximizing upside, with little incremental expense.
Incentive compensation is making lots of news lately, but the news is all bad. Mylan's Epipen, Volkswagen, and Wells Fargo. Ugh.