How medtech leaders are revising sales incentive compensation plans
Sales force incentive compensation often is one of the largest operating expenses for medical device companies. Many rely on analytics and qualitative factors to design and manage an optimal IC plan, set territory sales quotas and balance trade-offs across a variety of dimensions. These exercises are difficult enough in “normal” times, but with the COVID-19 pandemic, these are anything but normal times.
For most companies, the net impact has been reduced sales as delayed and canceled elective surgeries and other medical procedures have brought orders to a screeching halt. Some companies that manufacture essential products such as ventilators, PPE and COVID-19 tests, have had the opposite experience: Order activity has jumped at an unprecedented rate. In either case, the steady-growth performance that the typical medtech firm was planning for has been replaced by a massive upward or downward revision.
We recently held two virtual roundtable discussions—expanded from one roundtable due to high demand—to discuss COVID-19's impact on IC and the ways in which the industry can respond. More than 30 participants, mainly c...
