Performance-oriented compensation, incentives, bonus systems, and stock options are always topics of discussion and conflict. Employee satisfaction, work motivation, and performance are closely linked to the compensation strategies of companies. However, performance and potential do not have to be identical, just as motivation and incentive do not have to be the same. The author clearly outlines these differences and explains which tools can be used to avoid disappointed expectations, misunderstandings, and inefficiencies. Comprehensive yet focused, he presents the various incentive systems (bonus, performance-based, success-oriented, variable pay) and complements them with a selection of compensation strategies, including current trends. Additionally, he addresses both the appraisal conversation itself and the best conditions for it.