OTE (on-target earnings)
OTE — on-target earnings — is the total cash compensation a salesperson earns when they hit 100% of their quota. Base salary plus variable at target. The standard compensation framing for sales roles.
How OTE is structured
A typical sales role’s compensation:
- Base: 50-70% of OTE, paid regardless of performance.
- Variable at target: the rest. Earned at 100% of quota.
- Accelerators: payouts above 100% of quota, often at 1.5-2x rate. A salesperson who closes 120% of quota earns more than 120% of variable.
- Decelerators or floors: variable paid below 100% of quota, sometimes with a threshold (no variable below 60% achievement).
A “€100k OTE” role typically means €60-70k base + €30-40k variable at target. A salesperson at 80% of quota earns ~€84-92k; at 130% they earn €110-125k.
What “OTE” obscures
Three commonly hidden details a sales candidate should ask about:
- What % of the team hit OTE last year? If <60% hit target, the OTE number is aspirational, not typical.
- What’s the quota? A €100k OTE with a €600k quota is different from one with €1.2M quota. Same comp, different reachability.
- Is the comp plan stable? Plans that change mid-year erode trust; plans capped at 120% put a ceiling on performance.
Where it sits vs. total comp
OTE is typically the headline number in sales job postings; total comp adds equity and benefits on top. A senior sales role might post “€120k OTE” with a total comp of €145-160k including equity. Both numbers belong in the conversation.