Longman Dictionary of Contemporary English
performance-related pay
noun
EXAMPLES FROM CORPUS
▪ A new performance-related pay scheme was introduced.
▪ Meanwhile the performance-related pay proposals are destructive and divisive.
▪ Private-school staff resist performance-related pay, so the lazy and incompetent can earn as much as inspirational enthusiasts.
▪ The case has not been proved that job evaluation and performance-related pay can be applied to nursing.
▪ There are several different kinds of performance-related pay.
▪ There is a generous stock-option scheme, and performance-related pay that can, in some cases, double basic salaries.
▪ They suffered 25 percent performance-related pay cuts, dropping to £996,000 and £740,700 respectively.
▪ This partly explains the interest of some managers in performance assessment and performance-related pay.
Wikipedia
Performance-related pay
Performance-related pay or pay for performance is a salary or wages paid based on how well one works. Car salesmen or production line workers, for example, may be paid in this way, or through commission.
Many employers use this standards-based system for evaluating employees and for setting salaries. Standards-based methods have been in de facto use for centuries among commission-based sales staff: they receive more pay for selling more, and low performers do not earn enough to make keeping the job worthwhile even if they manage to keep the job.
Usage examples of "performance-related pay".
He'd had a steady climb on the career ladder over the years, gaining enough performance-related pay awards to enable him to pay off the mortgage on this house in three years.