Income disclosure vs compensation plan: what is the difference?
An income disclosure shows what participants received or earned during a period. A compensation plan explains the rules for how participants may qualify for pay.
Explainers
These pages explain common disclosure terms in plain English, so you can compare the pitch with the written facts.
An income disclosure shows what participants received or earned during a period. A compensation plan explains the rules for how participants may qualify for pay.
Average income can be pulled upward by a small number of high earners. Median income shows the middle participant result.
Many disclosures report money received before subtracting ordinary costs. Ask which expenses are required, optional, or commonly encouraged.
Regulator guidance looks at whether products are sold to real customers outside the business, not mainly bought by participants to qualify for pay. Ask how customer sales are verified.