Acquiring, retaining and motivating the right talent continues to top the list of challenges identified by CFOs and other C-Suite executives at companies of all sizes. Incentive compensation plans that miss the mark can damage any company’s profitability, and even put the future of a company at risk. Yet, despite with the availability of data to better understand the behaviors of customers and those tasked with engaging and managing them, incentive compensation design and management still often fails to get its due. Join us as Erik Charles, Principal Incentives Strategist, Xactly explains the science of an effective incentive compensation program including the essential components of its DNA.

1. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
The Science of Incentive
Compensation Programs: The
DNA of What Works

2. Learning Objectives
After attending this event you will be able to:
• Identify specific areas of improvement for your
company’s incentive compensation programs
• Benchmark your company’s incentive compensation
design elements and processes relative to companies
whose plans impact their bottom lines
• Identify opportunities to better align your company’s
incentive compensation processes and technology to
drive more profitable sales

3. Welcome to Proformative
Proformative is the leading educational resource for corporate finance
professionals.
Announcing the new Proformative Academy:
• On demand video courses taught by peers and SMEs
• Over 125 finance and accounting courses and growing rapidly
• CPE for CPAs, CMAs, CTPs, and CIAs
Check it out at www.ProformativeAcademy.com

4. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals
The Science of Incentive Compensation
Programs: The DNA of What Works
Erik W. Charles, Principal Incentives
Strategist, Xactly

6. 700+ Customers
16,000 Plan Designs
$10 Billion in Payments

7. SOME OF THE DATA ELEMENTS
WE ARE ANALYZING
QUOTAS
Quota Amount – Primary Plan Component
Quota Amount – Secondary Plan Component
PLAN DESIGN
Plan Component Weights
Target Incentive
VARIABLE PAY & RATES
Total Variable Pay
Variable Pay – Primary Plan Component
Variable Pay – Secondary Plan Component
Commission Rates – Primary Plan Component
Commission Rates – Secondary Plan
Component
REP PERFORMANCE
Quota Attainment – All Plan Components
Quota Attainment – Primary Plan Component
Quota Attainment – Secondary Plan Component

8. Forecasting
Accruals
Security
Workflow
Auditability
Sales Rep Visibility
Exec Scoreboard
Finance Dashboard
Mobile
Analytics
CONTROL & RISK
MANAGEMENT
ANALYTICS, REPORTING
& COMMUNICATION
Benchmarks
Plan Design
Goal Alignment
Modeling
Quotas
Driving Behavior
Integration
Configuration
Automation
Adaptability
Communication
STRATEGIC PLANNING
& DESIGN
CALCULATIONS
& ACCURACY
Territories
Scalability
Adjustments

9. STRATEGIC PLANNING & DESIGN
Do you model the potential impact of plan
designs?
How often do you benchmark against peer
firms?
Are rep goals in alignment with company
goals?
Are quotas and territories designed, or
negotiated?
Can YOU make the changes necessary?
Benchmarks
Plan Design
Goal Alignment
Modeling
Quotas
Territories
Driving Behavior

10. STRATEGIC PLANNING & DESIGN
We use empirical data sources
when designing our incentive plans
What data do you leverage when designing new plans?
Prior period
data
Current
period data
3rd party
performance data
3rd party
incentive data
Benchmarks
Plan Design
Goal Alignment
Modeling
Quotas
Territories
Driving Behavior
Importance 1 2 3 4 5 6 7

11. Salary Percentage (of Total Compensation)
Reps
Managers
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
-9% -19% -29% -39% -49% 1 0 -05%9% -69% -79% -89% -99%

12. The Science of Incentive Compensation
Programs: The DNA of What Works
Thank you for your interest in this presentation.
View the on-demand webinar or download the full
presentation at:
www.Proformative.com