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On-Target Earnings (OTE)

Total expected pay when performance targets are met — base salary plus on-target commission or bonus.

On-Target Earnings (OTE) is common in sales and other commission-based roles. It combines your guaranteed base salary with the variable pay you would earn by hitting 100% of your targets. A "$120k OTE, 50/50 split" means $60k base and $60k in commission at target.

Because only the base is guaranteed, always ask what the base is, how realistic the targets are, and whether commission is capped.