” Mynor was not worried about the compensation

” Mynor was not worried about the compensation; his main goal was to build a close relationship with
Sharon 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 for
Lux 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 compensation
package included accelerators, which increased the percentage commission a salesperson could earn
based upon quarterly sales.
A salesperson could potentially earn 24% commission. Arck’s compensation package included a
standard 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 attempting
to 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 Arck
make only 4 or 5 times more than the average salesperson.