Compensation and Commissions

1. Why am I not seeing any notifications or documents that need my signature in Xactly?

The individual commission plans (ICP) will be sent out on January 31st, at which you will then receive notification and be able to review and sign in Xactly. 

2. Is there a plan for recoverable draws given the ATR quarterly payout means less pay for the first few months of a quarter (net negative for most). 

Any individual on an incentive compensation plan at the end of January, with a plan component eligible for earning January commissions, will receive a recoverable draw equal to 50% of their monthly On-Target Incentive (OTI) for such plan component(s). Please note that if your component is not paid monthly, you will not be eligible for a recoverable draw for that component.

3. It seems like every year there is something new added to the comp plans to take more away from our paychecks (DDG, ATR, etc.) What is being done to put more more back into our paychecks?

DDG and ATR serve as additional incentives that incur higher costs for the company, contributing to richer compensation plans on average. As the company matures and evolves into a true portfolio organization, our compensation structures will increasingly reflect this complexity.

• DDG is designed to enhance deal quality, resulting in a higher proportion of Dark Green and Green deals compared to Red and Orange deals. Additionally, the structure favors rewards over penalties, leading to increased payouts.
• With ATR, we anticipate achieving higher average attainments compared to Bookings, which will likely result in increased payouts for this component. Additionally, Gross Revenue Retention (GRR) remains a significant focus for the company and is essential to our success, a priority that is clearly reflected in our compensation plans.
• We would also like to emphasize the introduction of a 75% multiplier on new business, which represents a significant enhancement compared to previous years.

4. Are there any salary adjustments with the shift from MM to Enterprise?

Please work with your PeopleOps Business Partner and your manager on salary related questions.

5. Is there a compensation calculator for each role?

Yes, the calculators are currently under development and will be made available in the near future. You will be able to find it on our seismic page once it is available. 

6. How long should an AE be the owner of the account in order to be held accountable for the churn. For example, can an AE be responsible for a 100% churn if it churns within 1 month of having the account to begin with

There is no timeframe, if the customer is in the AE book of business the churn will apply to the account owner at the time of the churn.

7. Is there an incentive to move customers from monthly to annual? 

There is no commission based incentive.

8. Do we already have FX rates confirmation for the markets we sell in local currency?

The FX rates have already been confirmed by Finance and were uploaded into SFDC on January 1, 2025 for the fiscal year.

Account Executives

1. Why does Enterprise have a higher penalty on >12 months than the other segments? And why is there not a 10% accelerator for Enterprise?

Enterprise deals should ideally have a longer contract duration. In contrast, we anticipate a higher volume of shorter-term deals in the down-market segments. This difference in deal duration is reflected in the higher penalty associated with Enterprise contracts.

There is no 10% accelerator for contracts of 24 months in the Enterprise and Commercial segments. As our average contract length continues to increase, we aim to further extend this trend, particularly by emphasizing contracts of >= 36 months, especially in the up-market segment.

2. With the higher penalty and no 24 months accelerator plus ATR element this is a big concern for many Enterprise AEs. They see this as a worse comp plan than their colleagues in other segments. What is the reason? 

Within the Enterprise plan, while there may appear to be less potential for upside, there is also reduced downside risk. With the ATR in place, Enterprise AEs benefit from a buffer. Assuming our renewal rate is in the 80% range, AEs are nearly guaranteed to achieve 100% of their ATR portion of On-Target Income (OTI).

3. Do AEs get incentivized to run a cross sell sales effort in products that might be required to fill a churn number? 

AEs earn commissions based on net positive bookings. Given the wide range of products available for sale, it is essential for teams to collaborate cross-functionally—including AEs, Specialists, Customer Success, Renewals, and Solution Consultants—to deliver a comprehensive solution that meets the customer's needs. There are numerous opportunities to address and mitigate churn effectively.

4. For the Digital Sales tier 2 plans, are there multipliers for multi year deals? If not, could you explain the reason?

There is no additional BCR for multi-year deals in Digital Tier 2 sales, nor is there a reduced BCR for contracts with a duration of less than 12 months. This policy is reflective of the typical contract terms observed within the Digital segment customer base.

5. How long do AMER SMB NAEs own new business accounts? If something is sold after 180 days how is the commission calculated?

AMER SMB NAE will hold the accounts for all of 2025. The commissions are calculated the same for both new and expansion after 180 days in this plan.

6. Is the business after the 180 days compensated?

If a customer completes a purchase more than 180 days after their initial new business purchase, this is classified as an expansion. For the AMER CAE and AMER NAE plans, all bookings—whether categorized as New Business, Expansion within the first 180 days, or Expansion after the first 180 days—are compensated at the same BCR rate.