The GEICO Incentive System

At GEICO, we have two variables. And they apply to well over 20,000 people. The first year any business we put on the books is going to reduce profit significantly. But beyond that point, everybody's been there a year or more and knows, understands that these two variables will determine bonus compensation. As you go up the ladder, it has a multiplier effect. It's still the same two variables, but it gets to be larger and larger in terms of bonus compensation as a percentage of your base. "I care about growing the business and I care about growing it with profitable business," he says.