Verizon sales compensation plans overview for frontier
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Verizon Sales Compensation Plans Overview for Frontier PowerPoint PPT Presentation


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Verizon Sales Compensation Plans Overview for Frontier. Agenda. Transition from Enterprise & SMB to Spinco Target Compensation and Pay Mix Performance Measures Measurement period / pay frequency Payout Mechanics Policies Monthly maximum commissions Partial months New hire draw.

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Verizon Sales Compensation Plans Overview for Frontier

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Verizon sales compensation plans overview for frontier

Verizon Sales Compensation PlansOverview for Frontier


Agenda

Agenda

  • Transition from Enterprise & SMB to Spinco

  • Target Compensation and Pay Mix

  • Performance Measures

  • Measurement period / pay frequency

  • Payout Mechanics

  • Policies

    • Monthly maximum commissions

    • Partial months

    • New hire draw


Transition from enterprise smb to spinco

Transition from Enterprise & SMB to Spinco

  • VZ will move sales personnel from the Enterprise and SMB groups to Spinco, effective April 1

  • Sales comp plans are different in Enterprise and SMB

    • Enterprise revenue is based on TBR; SMB is based on RBR

    • The segments use different revenue and sales reporting databases

    • Commission-eligible product sets vary

    • Segments use different systems to administer the sales comp plans

  • Spinco will have one set of consistent plans and systems to support the business

    • Comp plans have been designed for Spinco; overview in this material

    • Sales and revenue reporting will be consolidated and consistent for all Spinco

    • Commission-eligible product lists have been combined

    • All Spinco sales comp plans will be administered using the CA$H system


Target compensation and pay mix

Target Compensation and Pay Mix

  • Sales jobs

    • Sales Director60/40

    • Sales Manager60/40

    • Account Executives60/40

    • Telephone Account Manager60/40

    • Inside Sales Representative60/40

  • Sales Engineering

    • SE Director70/30

    • SE Manager75/25

    • Sales Engineer75/25


Performance measures

Performance Measures

  • Plans are based on two types of performance measures

    • Revenue; credited monthly

    • Transactional Sales; credited at time of sale

      • Monthly Recurring Sales

      • Renewals

  • Revenue

    • May be RBR or TBR; final decision pending

  • Monthly Recurring Sales (MRS)

    • Includes services billed on a monthly basis; based on list of eligible product codes

    • Sales credit based on pre-determined estimated monthly charges, by product code

    • New and incremental sales only

  • Renewals

    • Only applies to one job: Telephone Account Manager (Pooled)

    • Includes renewals of monthly recurring service contracts


Performance period and payout frequency

Performance Period and Payout Frequency

  • All performance measures are calculated on a cumulative Year-To-Date basis

    • Each month’s quota is the summation of all prior months and current month

    • Each month’s results are the summation of all prior months and current month

    • For example

  • All plans are paid monthly

    • Sales components are paid one month in arrears (January results are paid in February)

    • Revenue is paid two months in arrears (January results are paid in March)


Payout mechanics

Payout Mechanics

  • All components are paid using a formula bonus

    • Payouts are based on % of YTD quota achieved

    • Payouts are calculated based on % of YTD target incentive

  • Revenue & MRS are paid using a payout table / formula

    • No pay below threshold

    • Payout rate between threshold and 100%

      • For example: 2% of target incentive per 1% of quota attained between threshold and target

    • Rate accelerates above 100%

    • Rate decelerates, but does not have a cap

      • MRS decelerates after reaching 300% of target incentive

      • Revenue decelerates after reaching 250% of target incentive

    • Payout formulas vary depending on specific comp plan

  • Renewals are paid on a straightline basis

    • Quota attainment % = payout %

    • No threshold; pay from first dollar

    • No acceleration above 100%; uncapped


Pay table examples

Pay Table Examples


Policies maximum monthly advances

Policies – Maximum Monthly Advances

  • Monthly limits apply to advances on all Revenue & MRS

    • Helps reduce rep chargebacks

    • Manages volatile earnings through the year

  • Note: For WVA employees, VZ will provide a file with YTD results for WVA modules


Policies partial months

Policies – Partial Months

  • For months in which an employee is in position for less than the full month

    • Target incentive and quotas are pro-rated based on the number of working days the employee is in the position

    • MRS & Renewals:

      • Sales credit is given for all results during the days the employee is in the position

    • Revenue:

      • If the employee is in the position on the 15th of the month, employee receives 100% Revenue credit for the full month

      • If the employee is not in the position on the 15th of the month, employee does not receive Revenue credit for the month. Employee receives a pro-rated draw for the period in position


Policies new hire draw

Policies – New Hire Draw

  • New hires receive 100% non-recoverable draw for the first two performance months they are in position

    • MRS is paid one month in arrears, so draw is paid in months 2 & 3

    • Revenue is paid two months in arrears, so draw is paid in months 3 & 4

  • Example:

    • Assume a new hire comes on board in March with $30,000 annual target incentive

    • Their comp plan is based on 60% MRS & 40% Revenue


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