Abstract: This invention relates generally to software, and more specifically, to a conditional compensation system. In one embodiment, the invention includes an application server, the application server including a conditional compensation system, the conditional compensation system facilitating performance based compensation. In a further embodiment, the conditional compensation system includes an instrument component, the instrument component configured to establishing at least one instrument; an event management component, the event management component configured to adjusting the at least one instrument; and a payment component, the payment component configured to issuing at least one payment in accordance with the at least one instrument.