OTE Reality Check: Comp Plan Audit Checklist for Candidates
A 30-point, section-by-section checklist that walks AEs and SDRs through every clause and number in a comp plan document before they sign. Covers quota attainability, accelerator tiers, clawback, territory definition, and plan change history, with a built-in earnings modelling table.
How to use it
Print or open this checklist alongside the comp plan document you've been sent. Work through each section in order, marking every item and noting red flags before you accept or negotiate. Use the modelling table in Section 5 to calculate your realistic earnings at 75%, 85%, and 100% attainment before you treat the OTE number as real.
What's inside
- 30 structured audit checks across five failure-mode categories
- Red-flag answer guide for each check, so you know what bad looks like in writing
- Recommended action for each red flag, including questions to ask the hiring manager
- Quota attainability section with specific percentage thresholds to test against
- Accelerator tier analysis covering placement, rate, and cap mechanics
- Clawback clause decoder covering trigger events, recovery windows, and deal exceptions
- Territory definition checks covering named accounts, patch size, and historical churn
- Plan change frequency tracker with questions on amendment rights and notice periods
- Earnings modelling table to calculate expected pay at 75%, 85%, and 100% attainment
- "When to walk" summary with plain criteria for declining or renegotiating before signing
OTE is a projection, not a promise. Every comp plan document contains the real story: what you actually get paid, when, under what conditions, and whether the company can change the rules mid-game. Work through this checklist before you sign anything.
How to use this checklist
You need the full comp plan document, not a slide from the recruiter. If they won't share it before you sign the offer letter, that is itself a red flag. Work section by section. Mark each item, note red flags, and use the questions listed to push back or clarify. Fill in the modelling table in Section 5 with the actual numbers from your plan.
Section 1: Quota Attainability
The OTE number is meaningless if the quota is built to be missed.
| # | What to check | Red flag answer | What to do |
|---|---|---|---|
| 1 | What percentage of the current team hit 100% of quota last year? | Below 60% of reps at full attainment | Ask for the attainment distribution, not just the average |
| 2 | What percentage hit at least 75%? | Below 75% of reps reaching 75% threshold | Treat the OTE as unachievable for most people |
| 3 | How was this quota set? (top-down, bottoms-up, market-based?) | "It's based on company targets" with no rep-level logic | Ask what inputs feed the number and who validated it |
| 4 | Is the quota new for this role or carried over from a predecessor? | New quota with no historical reference point | Request the rationale in writing |
| 5 | Has quota increased year-on-year? By how much? | Quota grew faster than territory or market did | Model your likely Year 2 quota, not just Year 1 |
| 6 | Is there a ramp period, and what is your quota during ramp? | Full quota from day one, or ramp period shorter than your average sales cycle | Negotiate ramp explicitly before signing |
Section 2: Accelerator Tier Placement and Rate
Accelerators only pay if they're reachable and the uplift is meaningful.
| # | What to check | Red flag answer | What to do |
|---|---|---|---|
| 7 | At what attainment percentage does the first accelerator kick in? | Above 100% only, with no partial credit below the line | Check whether any uplift applies at 85-99% |
| 8 | What is the commission rate below 100%? | The same rate as above 100% (no accelerator at all) | Calculate base-rate earnings at your realistic attainment level |
| 9 | What is the accelerator multiplier above 100%? | Less than 1.5x the base rate | Compare to market: typical range is 1.5x-2.5x |
| 10 | Is there a commission cap or earnings ceiling? | Hard cap at 110% or 120% of OTE | A cap directly limits your upside; negotiate removal or a higher ceiling |
| 11 | Are accelerators applied retroactively (from £0) or on incremental revenue only? | Incremental only, with no retroactive uplift | Model the difference: retroactive is significantly more valuable |
| 12 | Do different product lines carry different commission rates? | Higher-margin products pay less commission than lower-margin ones | This creates perverse incentives; clarify in writing which rates apply to your territory |
Section 3: Clawback Terms
Clawback clauses can recover commission you've already spent.
| # | What to check | Red flag answer | What to do |
|---|---|---|---|
| 13 | Does the plan contain a clawback clause? | Yes, with no time limit on recovery | Ask for the exact clawback window (standard: 90-180 days post-payment) |
| 14 | What triggers a clawback: customer cancellation, non-payment, or both? | Any early cancellation, including those outside your control | Push for clawback to be limited to deals you mis-sold or where fraud occurred |
| 15 | How is the clawback amount calculated? | Full commission recovered regardless of how much of the contract period elapsed | Pro-rated recovery by month is fairer; check which applies |
| 16 | Can a clawback be offset against future commission, or does it require direct repayment? | Direct repayment required, potentially after you've left the business | Understand your exposure if you move roles before a deal completes its term |
| 17 | Is there a clawback on deals that are discounted or restructured post-close? | Yes, with no carve-out for company-initiated restructures | Ask explicitly: if the company renegotiates a contract, do you repay commission? |
Section 4: Territory Definition and History
A poor territory makes a good plan worthless.
| # | What to check | Red flag answer | What to do |
|---|---|---|---|
| 18 | Is your territory defined in the plan document, or is it verbal? | Verbal only | Require written territory definition as a condition of signing |
| 19 | Is the territory defined by geography, named accounts, or vertical? | Undefined or "to be confirmed after start date" | Do not accept this; territory definition sets the ceiling on your earnings |
| 20 | How many named accounts are in your territory, and how many are currently open opportunities vs. untouched? | Majority are already customers with no expansion potential, or majority are long-dead prospects | Ask for a breakdown: existing customers, active prospects, and cold accounts |
| 21 | What was the previous rep's attainment in this territory? | "The role is new" with no explanation of why, or previous rep left within 12 months | Ask why the territory is open; churn in under a year is a warning sign |
| 22 | Can the company reassign accounts without your consent? | Yes, at any time, with no compensation adjustment | Negotiate a minimum account count or a review trigger if accounts are reassigned |
| 23 | How does territory work if the company is acquired or restructures? | Territories are subject to change with 30 days' notice (or less) | Understand your protection window; ask what happens to in-flight deals |
Section 5: Plan Change Frequency and Amendment Rights
The plan you sign may not be the plan you work under.
| # | What to check | Red flag answer | What to do |
|---|---|---|---|
| 24 | How often has the comp plan changed in the last three years? | More than once per year, or changed mid-year | Ask why it changed and what triggered it |
| 25 | How much notice must the company give before changing the plan? | Less than 30 days, or no notice requirement | Push for 90 days minimum, or a clause that protects deals in your pipeline |
| 26 | Does your signature constitute acceptance of all future amendments? | Yes, explicitly | This is standard but worth knowing; some plans require fresh sign-off on changes |
| 27 | Are deals in progress protected under the old plan if the plan changes mid-year? | No protection clause | Negotiate explicit in-flight deal protection before signing |
| 28 | Who has authority to approve exceptions (SPIFFs, non-standard deals, holdover accounts)? | Unclear, or "manager discretion" with no escalation path | Identify the named decision-maker and ask for one example of how an exception was handled |
| 29 | Is there an appeals or dispute process if commission is calculated incorrectly? | No formal process | Without one, your only option is informal; understand this going in |
| 30 | Does the plan specify a payment timeline? | "Net 30 after quarter close" or longer, with no guaranteed date | Late payment erodes your cash flow; clarify the exact payment date and what happens if it slips |
Section 6: Earnings Modelling Table
Fill this in using the actual rates from your comp plan. Do not use the OTE headline number as your input.
Your inputs:
- Annual quota: £\_\_\_\_\_\_\_
- Base salary: £\_\_\_\_\_\_\_
- Commission rate below 100% attainment: \_\_\_\_%
- Commission rate above 100% attainment: \_\_\_\_% (accelerator rate)
- Accelerator threshold: \_\_\_\_% of quota
- Commission cap (if any): £\_\_\_\_\_\_\_
| Attainment level | Revenue closed (£) | Commission earned (£) | Total cash (base + commission) |
|---|---|---|---|
| 75% | = quota x 0.75 | = revenue closed x base rate | = base + commission |
| 85% | = quota x 0.85 | = revenue closed x base rate | = base + commission |
| 100% | = quota x 1.00 | = revenue closed x base rate | = base + commission |
| 120% | = quota x 1.20 | 100% at base rate + 20% at accelerator rate | = base + commission |
Example (quota £400,000, base £50,000, 10% base rate, 15% accelerator above 100%):
| Attainment | Revenue closed | Commission | Total cash |
|---|---|---|---|
| 75% | £300,000 | £30,000 | £80,000 |
| 85% | £340,000 | £34,000 | £84,000 |
| 100% | £400,000 | £40,000 | £90,000 |
| 120% | £480,000 | £40,000 + £12,000 = £52,000 | £102,000 |
If your 75% attainment total cash number does not cover your financial floor, the plan is too risky to accept without renegotiation.
When to walk (or renegotiate)
Walk away, or make these conditions of your offer acceptance, if:
- Fewer than 60% of reps hit 100% quota last year and the company cannot explain why
- The plan has a hard earnings cap below 130% of OTE
- The clawback clause has no time limit and requires direct repayment
- Territory is undefined, verbal, or "TBC after start"
- The plan has changed more than once per year over the last three years
- Your modelled earnings at 85% attainment do not cover your minimum financial requirements
Renegotiating a comp plan before signing is normal and expected. Renegotiating after signing is very difficult. Do it now.
The thinking behind this
OTE Is a Promise. Most Comp Plans Are Built to Break It. is the argument this resource puts to work.