OTE — On-Target Earnings
Definition: Total compensation a salesperson earns when they hit 100% of quota — base salary plus expected variable. OTE is the headline number in any sales offer and the anchor for capacity planning.
Example
In board meetings, you'll often hear something like: "Let's pull the latest OTE numbers before we make a call" — shorthand for on-target earnings.
When you'll hear it
OTE shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to on-target earnings — and they expect the room to already know what that means.
FAQs
What does OTE stand for?
OTE stands for On-Target Earnings.
What does OTE mean in business and finance?
Total compensation a salesperson earns when they hit 100% of quota — base salary plus expected variable. OTE is the headline number in any sales offer and the anchor for capacity planning.
Where will I hear OTE used at work?
OTE comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for on-target earnings, so people assume you already know the term.