OTE

Business & Finance abbreviation · Human Resources

OTE
Stands forOn-target earnings
CategoriesBusiness & Finance

OTE stands for On-target earnings, a human resources abbreviation.

Expected total annual pay for a sales role if the employee meets 100% of quota, combining base salary and variable commission or bonus. Splits such as 50/50 or 60/40 describe the base-to-variable mix.

Example: The account executive role pays $160,000 OTE on a 50/50 split.

Usage notes

Actual earnings can be well above OTE through accelerators for exceeding quota, or far below it in a poor year. Candidates often ask what share of the team hit quota last year to judge how realistic the figure is.

More human resources abbreviations

  • MSP – Managed service provider
  • NCNS – No call, no show
  • NSO – Nonqualified stock option
  • OD – Organization development
  • OE – Open enrollment
  • OT – Overtime
  • PEO – Professional employer organization
  • PFL – Paid family leave
  • PHR – Professional in Human Resources
  • PIP – Performance improvement plan
  • PT – Part-time
  • PTO – Paid time off

See all 86 human resources abbreviations →

Edited by the AbbreviationList.com team. Spotted an error or a missing meaning? Contact us.