The Rule of Threes: Foolproof Principles for Mastering Incentive Plans 

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About the Presenter

Dan Walter

Managing Consultant of FutureSense, LLC 


Dan is a managing consultant at FutureSense, a holistic human capital consulting firm. He has worked in the field of compensation since 1994. Dan was previously the founder of Performensation. His expertise includes equity compensation, performance-based pay, executive compensation, and talent management issues. He has also been the architect of software solutions and administrative and technological best practices used by many companies. Dan has coauthored several books on compensation and is a popular blogger on the topic. He also does dozens of presentations every year. 

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Designing, managing, and communicating incentive plans are among the most challenging hurdles HR and Compensation professionals face today. Great plans cannot be generic; instead, they must be structured to align closely with a company’s strategy, culture, and goals. At the same time, effective programs must also deliver pay that is in line with both effort and achievement.

This exclusive guide will simplify the complexity surrounding the incentive planning processes by providing guidelines that are restrictive enough to exercise a healthy degree of control over incentive pay, yet flexible to meet the evolving meets of your organization. More than 25 years of designing and observing compensation programs has led Dan Walter, Managing Consultant of FutureSense, LLC, to develop The Rule of Threes, a principled approach to mastering incentive plans.

In this exclusive guide, he discusses:

  • The fundamentals of The Rule of Three, including metrics, goal levels, and programs

  • Why most organizations only need three of each for a successful incentive plan

  • How to apply the approach to long-term, short-term, and commission plans

  • Alternatives to the Rule for organizations with unique considerations
Theresa M. Worman

Executive VP, Strategy & Development | Compdata Surverys & Consulting


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