Synygy and Towers Perrin Announce Findings of the 2008 Survey of Sales Incentive Plan Design and Governance for the Pharmaceutical Industry

Survey Summarizes Data from 43 Organizations Representing More Than 83,000 Sales Representatives

Chester, Pa. and Stamford, Ct., November 3, 2008—Synygy, Inc., and Towers Perrin today announced the findings of the 2008 Survey of Strategic Sales Incentive Plan Design and Governance in the Pharmaceutical Industry. Sponsored and produced by Synygy and Towers Perrin, the study provides a wealth of information and guidance for individuals who design sales compensation plans for pharmaceutical organizations. Now in its fourth consecutive year, the survey includes trend information on a wide range of topics.

Forty-three organizations representing more than 83,000 sales representatives participated in the study. The survey focused on sales incentive design practices covering primary care sales representatives, specialty sales forces, hospital representatives, and managed care account executives.

“We are gratified by the participation of such a large number of organizations and their willingness to share information on their compensation practices and results,” said Mark A. Stiffler, Synygy president and CEO. “Their openness in responding to the survey questions helps companies analyze how their processes and plans compare to the industry as a whole.”

“This research offers timely insights into sales compensation trends in the pharmaceutical industry,” said Mark Flavin, a principal in Towers Perrin’s Chicago office and leader of the firm’s Sales Force Rewards practice. “Although the data were collected earlier in the year, they highlight a renewed focus on bottom-line results that has become even sharper in the current financial crisis.”

Key findings from the 2008 survey reveal that economic factors and profit pressure are being reflected throughout the industry in a variety of ways:

• sales force downsizing has resulted in a significantly higher average tenure and a lower voluntary turnover of the sales force
• results indicate an increase in the number of companies that link incentive pay to company profitability, and show a greater willingness for companies to hold sales persons accountable for their results
• large organizations differ from specialty organizations in plan complexity, adaptability to change, frequency in plan modification, communication when modifying plans, and effectiveness at administering plans and timeliness of performance communication
• while declining in usage, Management Assessment Plans continue to supplement measuring quantitative results in large companies and at specialty organizations
• uncapped territory payouts continue to be the standard across the industry

Areas of study include primary objectives for sales incentive plans, frequency of updating plans, and plan linkages to profitability. The study also reports pay mix, plan mechanics, performance measures, and payout frequency by type of representative. Plan governance factors are compared, including incentive program planning, process ownership, frequency of reviewing the plan effectiveness, managing excessive payouts, adjustments, and communication. Finally, non-cash incentives and annual award programs are analyzed.

For more information on the 2008 Survey of Strategic Sales Incentive Plan Design and Governance in the Pharmaceutical Industry, contact Erich Sachse, Synygy Managing Consultant, at 610-494-3300 ext. 7280 or at sachse@synygy.com; or Elliot Scott, Towers Perrin Senior Consultant, at 212-309-3697 or elloit.scott@towersperrin.com.

About Synygy
Synygy is a recognized authority in sales performance and sales operations management and the most experienced provider of sales compensation management solutions. Synygy’s software and services include solutions for managing sales territories and channels, sales talent, sales quotas and objectives, sales compensation, sales metrics and analytics, sales data processes, sales reports and analyses, and sales communications. Based in Chester, Pennsylvania and with extensive operations in Europe and Asia, Synygy has achieved 17 consecutive years of success. www.synygy.com