promise

Commitment given by one party (the promisor) to another (the promisee) to carry out or refrain from carrying a specified act or acts. Promises, however, are legally binding only when they are made in a contract or by a deed.

In setting compensation, we like to hold out the promise of large carrots, but make sure their delivery is tied directly to results in the area that a manager controls. When capital invested in an operation is significant, we also both charge managers a high rate for incremental capital they employ and credit them at an equally high rate for capital they release.