A cap tells you how much upside they're willing to share
If variable is capped at 200% of target, then past 200% your check stops growing. Your base still pays and the company still books the revenue. You just don't get paid more for it.
Why companies cap
Mostly to protect against windfalls: a giant deal that landed in one rep's territory by luck, or a pricing mistake. That's a fair worry. A cap at 150% is a different thing. It limits an ordinary good year, not a windfall.
What to ask
- Where exactly is the cap, and is it on total variable or per deal?
- Has it ever been lifted for a big year?
- Is there a separate review for windfall deals instead?
A plan with a windfall review and no cap is usually better for the rep than a plan with a low cap. Pay Check shows exactly what a cap does to your 150% and 200% rows.
