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Presentation to a Forum of Sales ExecutivesTRANSCRIPT
The Silicon Valley VP of Sales Executive Forum
Mike VannemanMarch 9, 2009
© 2007 THE PACHERA GROUP
Topics
A Look Back
Trends
Compensation
Behind the door
What to ask for
When the Wheels Fall Off
Yoda Says…..
© 2007 THE PACHERA GROUP
One Year Ago
Dow: 11893.85
Nasdaq: 2212.49
Unemployment: 5.2%
© 2007 THE PACHERA GROUP
Today
Dow: 6547.05
Nasdaq: 1268.64
Unemployment: 9.4
© 2007 THE PACHERA GROUP
General Trends
“Flat is the new up!”
Sales force headcount: Flat
Compensation: Flat to down
Incentives: Flat but performers will be rewarded
Source: The Alexander Group
© 2007 THE PACHERA GROUP
What’s The Same?
Great Sales Leaders Are Always In Demand!!!!
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What We Are Seeing
High bar
Tight specs
Immediate impact
Protracted vetting
Some multiple offers
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Pay The Bills
Base Salary:
Low Mid High$150,000 $175,000 $225,000
© 2007 THE PACHERA GROUP
Take A Vacation
Variable Compensation:
Low Mid High$100,000 $125,000 $150,000+
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The Total Package
On Target Earnings (OTE):
Low Mid High$250,000 $300,000 $375,000+
© 2007 THE PACHERA GROUP
Buy An Island
Series A-B B-C
Equity 1.0%-1.75% .5%-1.00%
© 2007 THE PACHERA GROUP
Buy An Island
Variables Stage of funding Revenue VCs in the deal Cap table Current valuation Is there a there there?
© 2007 THE PACHERA GROUP
Skeletons In The Closet
Board / CEO dynamics
CEO / CFO relationship
Alignment of expectations
Compensation philosophy
Undisclosed issues
Realism of the plan
Product readiness
Market acceptance
© 2007 THE PACHERA GROUP
“Language of the Deal”
What’s most important
Observe behavior
Something to say no to
“Walk away” threshold
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What Should You Ask For?
Cash is king! Set incentives around business value
drivers Customer acquisition Revenue ACV Customer retention Bookings (if you are lucky)
Get as much equity however…
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Thrown Under The Bus
Separation Agreement: 3-6 months severance Cobra payments
Outplacement help
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The Gods Smile Upon Thee
Termination Without Cause Change of control Change of reporting structure Material change of responsibility Company relocation
“What’s the catch?”
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Yoda Says….
Maintain and build your network Attitude and health Listen to your gut Act and lead with courage
© 2007 THE PACHERA GROUP
Contact
Mike Vanneman [email protected](408) 464-6780
LinkedIn, Facebook, Plaxo
© 2007 THE PACHERA GROUP
Thank you!