Rick Smith
- 35 years of sales and marketing experience at the senior executive level in the medical devices and service industries
- Expertise in commission plan design, implementation and administration. Informed by deep experience with sales and marketing strategies; sales force organizational structures; merger-based sales force integration; and product introduction strategies
- Led sales and marketing organizations for large multi-national, mid-size and startup companies, including Siemens, Toshiba, Acuson
- All 7 Best Practices
- Pre-Meeting Discovery Process
- One-on-One Call with Expert
- Meeting Summary Report
- Post-Meeting Engagement
Sales Compensation
Key Trends
- Companies are giving highest priority to design, execution and outcome-tracking of sales compensation plans.
Many companies are implementing a sales compensation governance process, which includes plan development and plan management processes. These companies realize that market penetration, profitability and employee retention are direct outcomes of the success of the compensation plan. Therefore more resources, structure and processes are being put toward limiting risks and maximizing success in compensation plans.
- More companies are creating sales compensation management committees in an effort to maximize success.
Most companies have a sales compensation management committee within the company that focuses on the development and design of compensation plans. It is usually comprised of senior sales management, senior financial management and HR to ensure success of the plans throughout the year.
- Companies are recognizing it is critical to manage sales compensation on a global basis with local customization.
Companies manage sales incentive eligibility and design on a global basis, while managing pay mix, pay levels and sales goals locally. This must be done to have structures that are acceptable and motivating in each country or region.
- Sales compensation structures have become more flexible and motivating with varying combinations of compensation.
Most companies are now structuring sales compensation to consist of a base salary, commissions and bonuses. Many have added a stock-based compensation package for their sales organizations. These combinations prove to be more effective in addressing motivation, loyalty, employee retention and, critically, results.