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#1

Business Development Manager incentive plan  
Posted: 03/17/2010 03:19pm   175 Views
  

I am looking for information on how organizations have structured incentive plans for Business Development Manager positions.  What is the target incentive as a percent of base pay?  Are you measuring against sales volume or multiple components?  

Thanks in advance for your feedback!


Private34235

   
Business Development Manager incentive plan  
Posted: 03/17/2010 04:19pm   Revised: 03/18/2010 03:11am  
  

Here are some survey sources to consider:

Others may need this info to respond:  What industry are you in? What is the reporting relationship? What is the total revenue of your company? What approx. sales volume is the position responsible for generating? What do you mean by multiple components? Do you have similar positions in the company to compare to?

 


Private10790

   
Business Development Manager incentive plan  
Posted: 03/17/2010 06:00pm   Revised: 03/17/2010 06:01pm  
  

When the individual has substantial equity, that provides the very best incentive of mutual self-interest, line of sight and control (in our situation, at least).  Each enterprise is different, just like everyone else.


#2

Business Development Manager incentive plan  
Posted: 03/18/2010 05:24am   Revised: 03/18/2010 05:26am  
  

Is there any particular reason why you might  feel that this person won't achieve their goals without an incentive? Perhaps you've under-estimated their capacity for being self-motivated, hard working, and commited to the company.


#1

Business Development Manager incentive plan  
Posted: 03/18/2010 08:05am  
  

I think you have rushed to harsh judgement here.  There isn't a person in mind - we haven't even begun our hiring process.

The market data we are using to benchmark this new role indicates there is pay at risk, between 10-20%. 


Private12421

   
Business Development Manager incentive plan  
Posted: 03/18/2010 10:12am  
  

Just a quick thought, sales volume is not a good metric as that has no bearing on profitability. Maybe the proper metric should be sales volume within a certain margin (i.e. all sales that net >=15% profit). Also using one metric can focus all of the employee’s attention on that specific metric, try to think of other quantifiable metrics to tie his/her performance to as well. Additionally if you have solid market data that suggests 10-20% at risk pay is the norm, I would not sway too far from that benchmark.


 
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