of work for them to complete for that shift. But the employer sets the projected time it should take unreasonably lower than X, effectively lowering that employee's hourly rate for the entire shift. This can even be used to avoid paying overtime in some circumstances, and is a common tactic used in various US based warehousing operations and short-haul/LTL delivery companies, notably in wholesale food and restaurant service companies, especially where employees lack the union representation that's usually required to bargain for fair rates under pay schemes like these, as well as safe, tolerable working conditions. In other cases, opposition is motivated by a dislike of the consequences. For example, a company may have had a compensation system which paid employees strictly according to their seniority. They may change to a system that pays sales staff according to how much they sell. Low-performing senior employees would object to having their income cut to match their performance level, while a high-performing new employee might prefer the new arrangement. Another argument is that the judgment of one's performance can be subjective (the judgement of the same quality of work can vary from department to department in a company and from supervisor to supervisor). Financial sector A further example can be seen in the public policy responses to Incentive Pay or Bonuses in the financial services sector following the financial crisis in 2008. The structure of the incentive pay schemes were deemed to be a contributing factor to the crisis and regulators around the world, co-ordinated by the Financial Stability Board issued recommendations to ensure that incentives schemes were re-designed. In Europe this has led to the Capital Requirements Directives legislation which has established a cap on variable or incentive pay which can be not more than 100% of the fixed pay for an individual in any given year, rising to 200% with shareholder approval. Sources See also Merit Pay Incentive program Compensation of employees Seasonal bonuses (Japan) Pay for performance (healthcare) Pay-for-Performance (U.S. Federal Government) Pay for play Employment compensation