vp group presenation 0309
DESCRIPTION
Presentation to a Forum of Sales ExecutivesTRANSCRIPT
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The Silicon Valley VP of Sales Executive Forum
Mike VannemanMarch 9, 2009
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© 2007 THE PACHERA GROUP
Topics
A Look Back
Trends
Compensation
Behind the door
What to ask for
When the Wheels Fall Off
Yoda Says…..
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© 2007 THE PACHERA GROUP
One Year Ago
Dow: 11893.85
Nasdaq: 2212.49
Unemployment: 5.2%
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© 2007 THE PACHERA GROUP
Today
Dow: 6547.05
Nasdaq: 1268.64
Unemployment: 9.4
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© 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
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© 2007 THE PACHERA GROUP
What’s The Same?
Great Sales Leaders Are Always In Demand!!!!
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© 2007 THE PACHERA GROUP
What We Are Seeing
High bar
Tight specs
Immediate impact
Protracted vetting
Some multiple offers
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© 2007 THE PACHERA GROUP
Pay The Bills
Base Salary:
Low Mid High$150,000 $175,000 $225,000
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© 2007 THE PACHERA GROUP
Take A Vacation
Variable Compensation:
Low Mid High$100,000 $125,000 $150,000+
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© 2007 THE PACHERA GROUP
The Total Package
On Target Earnings (OTE):
Low Mid High$250,000 $300,000 $375,000+
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© 2007 THE PACHERA GROUP
Buy An Island
Series A-B B-C
Equity 1.0%-1.75% .5%-1.00%
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© 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?
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© 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
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© 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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© 2007 THE PACHERA GROUP
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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© 2007 THE PACHERA GROUP
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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© 2007 THE PACHERA GROUP
Yoda Says….
Maintain and build your network Attitude and health Listen to your gut Act and lead with courage
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© 2007 THE PACHERA GROUP
Contact
Mike Vanneman [email protected](408) 464-6780
LinkedIn, Facebook, Plaxo
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© 2007 THE PACHERA GROUP
Thank you!