Key performance indicators
Key performance indicators (KPIs) are measurable values a business uses to track progress against its goals, such as revenue growth, customer retention or project delivery times. KPIs are a management and business term rather than a legal one, although they can become legally relevant when written into contracts.
How BC law treats it
There is no specific BC law on KPIs. When KPIs are written into contracts, employment terms or shareholder agreements, the ordinary law of contract governs how they are interpreted and enforced.
What it means for your business
KPIs used in contracts or compensation should be defined precisely so all parties measure them the same way.
Risks and common mistakes
Vaguely defined KPIs tied to bonuses or earn-outs often lead to disputes over how results were calculated.
Browse the full Fulcrum Law Dictionary for related terms.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
