Investment banker incentive compensation was focused on fees generated from assembling financial products, rather than the performance of those products and profits generated over time.

Examples are more direct incentive compensation awards and financial statement insurance approaches.

Other times, companies do it to reduce dilution from incentive compensation plans for employees.

Through incentive compensation structures, employees can be guided to focus their attention and efforts on certain organizational goals.

Agreements on objectives allow the company to continue flexible working and provide an additional incentive compensation for the extra performance of the employee.