LloydGross

The Boss

Sales Leadership Compensation

Looking to restructure compensation in a favorable way.

how should I think about compensation for sales managers? AEs compensation is a little more straight forward. How should I size a managers salary based on the revenue the team generates and general per AE improvement on the team?

what are typical OTE seen for sales managers?

🧠 Advice

🍾 Commission

🏋️‍♀️ Leadership

18 comments

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CuriousFox

WR Officer

🦊

@1nbatopshotfan

1nbatopshotfan

Politicker

Sales

Thanks Fox!

You want to look at a few things. Does the manager have any book themselves? Are they responsible for upsells and renewals or is it new logo only? Do they hold the whole budget or a portion?

I think generally you want to be around 70 or 75 of OTE as base and then the rest is 25-30 based on team performance.

SoccerandSales

Big Shot

Account Executive

Correct me if I am wrong, but from what I have seen, managers tend to have a vast majority in their base salary with a smaller quota/bonus for team achievement. Would your managers be open to potentially assuming more risk if you upped the variable and decreased the base?

Kosta_Konfucius

Politicker

ERP Sales

In the small sample size from where I have worked, their split is "typically" more on the 75/25 side favoring base. And paid out via quarterly bonuses on % to goal

CPTAmerica

Opinionated

President/CRO

hard to say what's typical. Most sales managers still have a double base OTE. Size of company, number or reps they manage, average deal size will all factor in.

LloydGross

Big Shot

The Boss

Typically for a rep you want annual quota to be somewhere around 4x-5x of their total OTE as a rule of thumb. Is there any math like that to size the actual total size of a managers OTE?

FinanceEngineer

Politicker

Sr Director, sales and partnerships

Management is heavier weighted on salary, with bonuses being % if everything sold. I have seen it at 1% of new sales, or fixed % of salary once milestones are hit and just going up. It depends on the product and margins.

oldcloser

Arsonist

💀

Really depends on revenue/stage of the company and seniority of the manager. If you're looking to bump management comp and share company success in a "favorable way," think salary increases.

poweredbycaffeine

WR Lieutenant

☕️

This is a far more complex topic than a Bravado post. Are you the CRO, CEO or CFO of the company?

LloydGross

Big Shot

-1

The Boss

Enlighten me

poweredbycaffeine

WR Lieutenant

☕️

$300/hr to consult. Cash or card?

Again, are you a leader at the company?

LloydGross

Big Shot

-1

The Boss

Yes. I would not be asking this if not a leader.

poweredbycaffeine

WR Lieutenant

☕️

Well since your profile says AE and SDR I am dubious.

So should I send you a 10-block consulting invoice?

LloydGross

Big Shot

-3

The Boss

No you dumb fuck. Why don’t you see your way off this thread because you’re not contributing anything helpful

poweredbycaffeine

WR Lieutenant

☕️

Wow. I would have helped when I had free time since I’ve built a lot of comp plans and structures, but now you’ll get nothing.

Have a sense of humor. It’ll propel you further.

LloydGross

Big Shot

The Boss

Thank you kindly. I’ll work on that sense of humor

SalesMama

Executive

Senior Account Executive

I’ve seen OTE even below that of reps but with higher equity. Aggregate team quota + maybe add a buffer and make that the goal on a 50:50 split

Maximas

Tycoon

-2

Senior Sales Executive