What does IC mean in ACCOUNTING

Generally, an incentive compensation program rewards things like sales growth, efficiency improvements, market share gains, cost savings, customer satisfaction, employee retention or loyalty and other similar behaviors that directly or indirectly support the successful accomplishment of an organization's objectives.

The success of the program is measured by how well employees perform against pre-determined goals and benchmarks set by the organization. The results will be evaluated and compared over a certain period of time to determine how much of a financial reward employees should receive.

Rewards vary based on the company's policies but they could include cash bonuses, stock options or awards, gift cards and other incentives such as trips or vacation packages. The size of the reward generally depends on how well employees meet their performance goals.

Yes, depending on the incentive structure set up by the company, it can be possible for employees to earn additional incentives if they exceed expectations with regards to their performance goals. For example, an employee could receive both a cash bonus and stock options if they far exceed their goal targets.

Yes - one potential disadvantage is that some individual performers may be rewarded disproportionately due to luck or chance rather than merit which may create tension among team members who are not receiving equal rewards for their effort. Additionally, providing significant rewards could encourage unethical behavior in order to increase the chances of achieving higher payouts which could negatively impact overall productivity and morale within the workplace.