Compensation & Rewards
How pay is structured, benchmarked, and explained, from gross pay to OTE.
Gross Pay
Gross pay is the total amount an employee earns in a pay period before any taxes or deductions are taken out. It includes base wages or salary, overtime, bonuses, commissions, and taxable allowances. Net pay, or take-home pay, is what is left after deductions like income tax, social security, retirement contributions, and benefits premiums.
On-Target Earnings (OTE)
OTE (on-target earnings) is the total pay an employee can expect in a year if they hit 100% of their targets. It is base salary plus variable pay, usually commission or bonus. OTE is standard in sales job offers, where a role might be advertised as "$80k base, $160k OTE". It is a projection, not a guarantee.
