Your Assignment: [Outline a Sales compensation Plan, reduce turnover, increase efficiency]

Outline the elements of the sales compensation plan (by role / level) including: Level 1: Inside Sales (IS)[4]

Level 2: Territory Managers (TMs) [10]

Level 3: Regional Sales Managers RSMs [3]; National Account Managers

NAMs [4]

NOTE: Numbers in brackets above [4] are number of salespeople in each role

NOTE 2 : Total Compensation assumptions include:

Level 1= $50,000 (OTE) * On Target Earnings

Level 2 = $100,000 (OTE)

Level 3 = $150,000 (OTE)

NOTE3: This will be specific to the Power Tools division of S-BD

NOTE 4: Directors/ VP/ CROs will be excluded for this phase of the project but could be part of a follow up committee.

Q 2.Outline what potential challenges sales compensation plans must avoid and describe how your plan will ensure these challenges are avoided.

Note: Consider: complexity of the sales compensation plan; capping sales compensation, less motivated employees and motivating higher performance plus any other challenges you can offer.