Chart: CEOs praises and protests about sales compensation systems.
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
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.