At Nucor Corporation (http://www.nucor.com), contingent pay has for many years been a part of the company’s approach to compensation. Nucor, based in Charlotte, North Carolina, is the largest producer of steel in the United States. The company employs 11,500 people. The pay practice at Nucor includes putting a considerable amount of pay at risk, and the size of paychecks depends upon results achieved. For comparison, competitors often pay and experienced steelworker between $16 and $21 per hour. The similarly qualified employee at Nucor would have a guarantee of $10 per hour, however, the bonus system at Nucor allows employees to make three times the average pay under certain circumstances, such as producing steel without any defects. Bonuses are based on performance and paid on a weekly basis. The system also means that substandard performance is penalized by a loss in pay. For example, errors may result in a lost bonus opportunity. Managers in the company are also paid a lower than average base pay, generally 75%-90% of industry average rates, but bonus payments could reach 75%-90% of base salary, depending on the performance outcomes established for the plant as a whole. In summary, Nucor Corporation has utilized contingent pay plans to motivate employee performance and reward positive outcomes.