Management Incentive Plan

What This Recipe Does

This recipe creates a quarterly performance-weighted distributor designed for management and leadership incentive compensation. It pools a percentage of qualifying revenue over a three-month period and distributes it proportionally based on each manager’s engagement score. Managers whose areas of responsibility generate stronger results receive a larger share.

The quarterly cadence is deliberate. It gives leaders enough time to execute strategy, absorbs short-term fluctuations, and aligns payouts with the business review cycles most organizations already follow.

Who It’s For

• Business owners who want to incentivize department heads and team leads with performance-based quarterly bonuses tied to real revenue outcomes
• Operations managers looking for a structured, automated way to calculate and distribute management bonuses without spreadsheets
• Growing companies that need to align leadership compensation with measurable business metrics across marketing, sales, and content teams

How It Works

When you apply this recipe, Siren creates a distributor shell configured for quarterly, performance-weighted payouts. The distributor uses the performanceSharedPool resolver, dividing the accumulated pool proportionally based on each manager’s engagement score over the quarter.

After applying the recipe, configure three things in your Siren admin. First, set the metric tracking events based on each manager’s area of responsibility. A marketing manager might be tracked on referredSiteVisit to reflect inbound traffic performance. A sales manager might be tracked on boundCouponUsed to reflect deal conversions. A content manager might be tracked on boundPostUsed to reflect audience engagement. Assign point values that reflect the relative importance of each metric. Second, set the revenue percentage that defines the pool. This determines how much qualifying revenue accumulates over the quarter. Third, configure the commission pool filters to specify which transaction types count toward the pool.

The quarterly cadence aligns with how most businesses already operate. Siren tracks engagement throughout the quarter and distributes on the first day of the following quarter. This structure gives managers a clear line of sight between their team’s performance and their compensation, while keeping the administrative overhead near zero.

{
  "version": 1,
  "name": "Management Incentive Plan",
  "description": "Quarterly revenue distribution among management, weighted by each manager's team performance metrics.",
  "distributors": {
    "managementIncentive": {
      "name": "Management Incentive Plan",
      "description": "Distributes a percentage of quarterly revenue among managers based on the engagement metrics their areas of responsibility generate.",
      "distributionResolver": "performanceSharedPool",
      "distributionPoolResolver": "revenueSinceLastDistribution",
      "status": "active",
      "units": "USD",
      "schedule": ["first day of +3 months"]
    }
  }
}