Tuesday, May 17, 2011
Cyling Secondary Profits?
When the LO compensation changed in the beginning of April, companies took various ways to cycle out the old compensation deals while starting up the new deals. We are seeing that many companies are not really doing a lot of forecasting to see when the old deals will cycle out and what effect it will have on the P/L. On the flip side, the new deals carry a different cycle which should be starting to hit the books in the next few weeks. Make sure you have a handle on the P/L effect of the old comp phasing out and the new comp plan phasing in. Know your rules and understand how each affects your profitability over the next 30-60 days.