Introduction

Three corporate financial analysts were discussing the sales forces at their companies. ''Our salespeople make lots of money; they are among the highest paid people in the company,'' said one. ''Fortunately, they are not yet paid as much as our officers, although I hear that is the case for some of our competitors. Our salespeople receive cars and incredible trips. One was to Hawaii—with just a few meetings sprinkled between golf rounds. Some of our salespeople took three trips this year—two new-product launch meetings, a few sales contests, and the President's Club trip. Who else in the company gets these perks?'' The second analyst reflected on the compensation plan for his company's sales force. ''Our incentive plan gives a bonus ...

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