Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

The Science of Incentive

Compensation Programs: The

DNA of What Works

• Identify specific areas of improvement for your

company’s incentive compensation programs

• Benchmark your company’s incentive compensation

design elements and processes relative to companies

whose plans impact their bottom lines

• Identify opportunities to better align your company’s

incentive compensation processes and technology to

drive more profitable sales

After attending this event you will be able to:

Learning Objectives

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Welcome to Proformative

Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

The Science of Incentive Compensation

Programs: The DNA of What Works

Erik W. Charles, Principal Incentives

Strategist, Xactly

16,000 Plan Designs

700+ Customers

$10 Billion in Payments

QUOTAS

Quota Amount – Primary Plan Component

Quota Amount – Secondary Plan Component

PLAN DESIGN

Plan Component Weights

Target Incentive

VARIABLE PAY & RATES

Total Variable Pay

Variable Pay – Primary Plan Component

Variable Pay – Secondary Plan Component

Commission Rates – Primary Plan Component

Commission Rates – Secondary Plan

Component

REP PERFORMANCE

Quota Attainment – All Plan Components

Quota Attainment – Primary Plan Component

Quota Attainment – Secondary Plan Component

SOME OF THE DATA ELEMENTS WE ARE ANALYZING

Forecasting

Accruals

Security

Workflow

Auditability

Sales Rep Visibility

Exec Scoreboard

Finance Dashboard

Mobile

Analytics

CONTROL & RISK

MANAGEMENT

ANALYTICS, REPORTING

& COMMUNICATION

Modeling

Benchmarks

Plan Design

Goal Alignment

Quotas

Driving Behavior

Integration

Configuration

Adaptability

Automation

Communication

STRATEGIC PLANNING

& DESIGNCALCULATIONS

& ACCURACY

Territories

Scalability

Adjustments

Do you model the potential impact of plan

designs?

How often do you benchmark against peer

firms?

Are rep goals in alignment with company

goals?

Are quotas and territories designed, or

negotiated?

Can YOU make the changes necessary?

Modeling

Benchmarks

Plan Design

Goal Alignment

Quotas

Driving Behavior

Territories

STRATEGIC PLANNING & DESIGN

We use empirical data sources

when designing our incentive plans

What data do you leverage when designing new plans?

Prior period

data

Current

period data

3rd party

performance data

3rd party

incentive data

STRATEGIC PLANNING & DESIGN

Modeling

Benchmarks

Goal Alignment

Quotas

Driving Behavior

Territories

Plan Design

2 3 4 5Importance 6 71

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%-9% -19% -29% -39% -49% -59% -69% -79% -89% -99%

Reps

Managers

Salary Percentage (of Total Compensation)

Thank you for your interest in this presentation.

View the on-demand webinar or download the full

presentation at:

www.Proformative.com

The Science of Incentive Compensation

Programs: The DNA of What Works