Sales Commission Plan — Account Executive

Employee: Jordan Lee Role / title: Account Executive (New Business) Manager: Priya Shah, VP Sales Effective dates: 1 January 2026 to 31 December 2026 Currency: USD

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1. On-target earnings (OTE)

Component	Amount
Base salary	$72,000
Variable pay at target	$48,000
On-target earnings (OTE)	$120,000

Base / variable split: 60 / 40

2. Quota & measurement period

• Quota (target): $600,000 in new-business bookings for the year
• Metric measured: Net new annual contract value from new customers
• Measurement period: Quarterly, with annual reconciliation
• What counts: A sale is credited when the customer signs a 12-month (or longer) contract. Renewals, expansions of existing accounts, and pilot agreements under 12 months do not count toward this quota.

3. Commission rate tiers

Rates apply to qualifying bookings in each quarter:

Attainment band	Commission rate	Notes
0% – 100% of quarterly quota	8% of bookings	Standard rate
Above 100% of quarterly quota	12% of bookings	Accelerator (see Section 4)

At target, $600,000 in bookings at 8 percent yields $48,000 in variable pay — matching variable-at-target OTE.

4. Accelerators & SPIFFs

• Accelerator: Every dollar booked above 100 percent of the quarterly quota earns 12 percent instead of 8 percent, rewarding overachievement.
• SPIFF (Q1 only): An extra $500 flat bonus for each new customer in a target industry (healthcare or logistics) signed between 1 January and 31 March 2026.

5. Caps, clawbacks & draw

• Cap: No cap. Overachievement is uncapped and earns the accelerated rate.
• Clawback: If a customer cancels and receives a refund within 90 days of signing, the commission paid on that deal is recovered from the rep's next commission payout.
• Draw: A recoverable draw of $2,000 per month for the first three months while the rep ramps, repaid from earned commission as it accrues.

6. Payment timing

• Calculated: Within 10 business days of each quarter close.
• Paid: In the payroll run of the month following the quarter.
• Conditions: The rep must be employed on the payment date, and deals must be signed and counter-signed to be credited.

7. Terms & acceptance

This plan governs Account Executive commission for the effective dates above. The company may review and update the plan for future periods with at least 30 days' notice. This plan does not alter at-will employment or guarantee continued employment.

Accepted by (employee): ______________________ Date: ____________

Approved by (company): ______________________ Date: ____________