” Mynor was not worried about the compensation; his main goal was to build a close relationship withSharon Esteves, the most senior sales executive to stay with the company after the merger.Differences in Sales Compensation It wasn’t until Mynor began to review the compensation plan forLux salespeople that he realized that he may have more of challenge managing the Lux sales team.The Lux Sales compensation package was vastly different than the Arck’s. Lux’s compensationpackage included accelerators, which increased the percentage commission a salesperson could earnbased upon quarterly sales.
A salesperson could potentially earn 24% commission. Arck’s compensation package included astandard 9% base commission paid after the quota was met. There was also a $50,000 bonus if the$6 million sales cap is reached. The Critical Issue The critical issue facing Arck Systems is attemptingto figure out how to best manage the Lux sales team.
While reviewing the plan, Mynor noticed that”top guns” at Lux make 30 times more than the average salesperson. Whereas the best sellers at Arckmake only 4 or 5 times more than the average salesperson.