Chapter 3

Who Owns Sales Compensation?

“Who owns the sales compensation program?” might seem like an academic question to some. “The sales department” is the obvious answer; yet when we examine this issue more closely, we find many players are involved in the design and management of the sales compensation program. Sales wants to drive performance. Marketing and product management want focus on select products. Finance wants a fiscally responsible pay program. The human resources department wants target total cash compensation to be externally competitive and internally equitable with nonsales jobs. The information technology department wants to provide timely and accurate administrative support, and legal wants legally protected and compliant ...

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