verizon sales compensation plans overview for frontier
Download
Skip this Video
Download Presentation
Verizon Sales Compensation Plans Overview for Frontier

Loading in 2 Seconds...

play fullscreen
1 / 11

Verizon Sales Compensation Plans Overview for Frontier - PowerPoint PPT Presentation


  • 203 Views
  • Uploaded on

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.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Verizon Sales Compensation Plans Overview for Frontier' - umberto-potter


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
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 Director 60/40
    • Sales Manager 60/40
    • Account Executives 60/40
    • Telephone Account Manager 60/40
    • Inside Sales Representative 60/40
  • Sales Engineering
    • SE Director 70/30
    • SE Manager 75/25
    • Sales Engineer 75/25
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
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
ad