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The incentive compensation systems for trade marketing and sales personnel were quite different. Incentives for trade marketing personnel were based on CAGP profit before tax

The incentive compensation systems for trade marketing and sales personnel were quite different. Incentives for trade marketing personnel were based on CAGP profit before tax (PBT) (40% weighting), the profit contribution of the brands managed (20%) and other objectives tailored to the role (40%). In contrast, incentives for field sales personnel were based on sales volume (75%) and CAGP PBT (25%). Target bonuses were generally around 15% of base salary for lower-level marketing personnel and 20-22% for lower-level sales personnel. Managers at higher organizational levels had higher target bonuses. The bonus opportunities were highly leveraged. No bonuses were paid for if targets were not close to being achieved (e.g. 90% of target). Exceeding targets could result in bonus payouts several times the target bonus (e.g. exceeding the target by 5% would sometimes more than double the bonus payout)

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