A method of testing an incentive compensation (“IC”) plan tests whether the plan computes incentive compensation to various participants in a fair manner, considering the differences in various characteristics that impact success in their job responsibilities, independently of their performance, such as, for a sales force as one example, characteristics of product class trends, territory size, market share, and market conditions. The fairness test may also test for stability and attainment tests. If the testing reveals unfairness, the plan may be redefined to reduce the unfairness.
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