Rebalancing Fixed and Variable Pay in a Sales Organization: A Business Cycle Perspective

  title={Rebalancing Fixed and Variable Pay in a Sales Organization: A Business Cycle Perspective},
  author={Pankaj M. Madhani},
  journal={Compensation \& Benefits Review},
  pages={179 - 189}
  • Pankaj M. Madhani
  • Published 3 March 2010
  • Business, Economics
  • Compensation & Benefits Review
The business cycle has a significant impact on the revenue and profitability of sales organizations and directly influences sales compensation costs. Operating leverage is a key variable affecting business performance during different stages of business cycle. Rebalancing fixed and variable pay in the compensation structure helps organizations in the effective management of operating leverage in business cycle stages. This article provides a framework for properly designing pay structure and… 
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