Should OKRs be linked to compensation?

In our experience, OKRs should not be linked to compensation as this can threaten the transparency and stretching functionality of the framework.

Performance management and OKRs are parallels that never meet. OKRs definitely work alongside performance management, but ideally they should not be linked together.

However, some companies are known to use the bright side of OKRs to manage compensation. While we do not recommend this approach, you might consider learning how they do this.

Our quick read illustrates how some high-growth companies are using OKRs to manage their way through compensation increases in their own ways.


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