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Compensation: Great Expectations

Chart: CEOs praises and protests about sales compensation systems.

By Inc. staff | 
 

MAY 1990

CEOs' praises and protests about sales-compensation systems:

Praises
Reinforces marketing 48% strategy

Motivates extra 41 selling effort

Attracts and keeps 40 good salespeople

Field force 38 understands it

Directs behavior well 32

Protests

Overpays marginal 48% performers

Underpays top 18 performers

Cumbersome design 13

Overpays top 8 performers

Source: Survey of Inc. Growing the Company Conference attendees: 234 executives of companies with average annual revenues of $16.1 million and an average of 11 sales employees, by Hewitt Associates, Lincolnshire, Ill., January 1990.

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