PROPOSED INTERCLEAN SALES EMPLOYEE
SALARY AND COMPENSATION PLAN
SALES MANAGER
29 SEPTEMBER 2008
An appropriate compensation and bonus plan has been set in place for the new Sales Division within Interclean. The new plan will be a base salary plus commission compensation based on earnings through a set sales volume. As the company expands, the compensation computations will be reviewed and altered on a semi-annual basis. The base salary of all sales associates will start at $40,000, with a 0% commission on the first $800,000 in sales, noted as the Threshold Sales. The Target Sales will be set at $1,200,000 for each salesperson, with the commission rate of 2.5% for sales between the Threshold and Target levels. An Optimal Sales value of $1,600,000 will give a 5% commission rate for sales between the Threshold level and the Optimal level. The available sales compensation and base salary mix, if the Optimal Sales level is reached, will be a 50/50 ratio. Figure 1 below reflects the ideals of C. Fusco as stated in Salary.com in 2003, and used for demonstration purposes here.
Figure 1
Optimal Pay-for-Performance
Targeted Pay-for-Performance
Base Salary
To ensure equitable available sales potentials for all sales representatives, the following will be taken into consideration:
• Sales territories: territory size and demographics will be taken into account
• Application of thresholds: at least 90% of sales personnel should exceed Threshold level
• Application ...