Performance, pay & rewards · Working
Short-term incentive
Also called: STI
ELI5
Variable compensation tied to results over a relatively short period.
Used in conversation
“Can we test the claim about short-term incentive against employee data and lived experience?”
Pitch context
You will see “Short-term incentive” in organisation plans, workforce reviews, change programmes and people reports when the discussion reaches performance, pay & rewards.
Why it matters: In performance, pay & rewards, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
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See how pitch.dog can helpSources & evidence · 2
Direct term-level sources and supporting source families.
- U.S. Bureau of Labor Statistics — BLS GlossaryDirect source · primary · checked 2026-08-16
- OECD — G20/OECD Principles of Corporate Governance 2023Direct source · institutional · checked 2026-08-16