Capability

    Compensation Models & Incentive Design

    Understand what a compensation measure rewards—and whether its economics remain supportable.

    A formula can produce consistent payments without continuing to reflect the work being performed. Changes in technology, duties, services or financial expectations can weaken the assumptions behind an established model.

    Cabra evaluates the financial design of compensation and incentive arrangements, connecting the measures used with the services and decision they are intended to support.

    01

    Understand the measure

    Define the duties, outputs and behaviors that the model measures. Consider whether productivity, time or other indicators still provide a comparable basis for the proposed compensation.

    02

    Test alternative designs

    Financial modeling can compare payment structures, thresholds and sensitivities. Assess the interaction between total compensation, performance assumptions and the resources available to fund the arrangement.

    03

    Coordinate the financial conclusion

    An agreed scope may include model analysis and related FMV support. Financial findings can be coordinated with legal, quality, payroll, coding and human-resources specialists to inform the arrangement's design and review.

    Start with the facts

    Discuss the decision in front of you.

    Contact Cabra Consulting to discuss the arrangement, the question to be answered and the financial support that may be useful.

    Contact Cabra