The Silicon Valley VP of Sales Executive Forum

Mike VannemanMarch 9, 2009

© 2007 THE PACHERA GROUP

Topics

A Look Back

Trends

Compensation

Behind the door

What to ask for

When the Wheels Fall Off

Yoda Says…..

© 2007 THE PACHERA GROUP

One Year Ago

Dow: 11893.85

Nasdaq: 2212.49

Unemployment: 5.2%

© 2007 THE PACHERA GROUP

Today

Dow: 6547.05

Nasdaq: 1268.64

Unemployment: 9.4

© 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

© 2007 THE PACHERA GROUP

What’s The Same?

Great Sales Leaders Are Always In Demand!!!!

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What We Are Seeing

High bar

Tight specs

Immediate impact

Protracted vetting

Some multiple offers

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Pay The Bills

Base Salary:

Low Mid High$150,000 $175,000 $225,000

© 2007 THE PACHERA GROUP

Take A Vacation

Variable Compensation:

Low Mid High$100,000 $125,000 $150,000+

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The Total Package

On Target Earnings (OTE):

Low Mid High$250,000 $300,000 $375,000+

© 2007 THE PACHERA GROUP

Buy An Island

Series A-B B-C

Equity 1.0%-1.75% .5%-1.00%

© 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?

© 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

© 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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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…

© 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?”

© 2007 THE PACHERA GROUP

Yoda Says….

Maintain and build your network Attitude and health Listen to your gut Act and lead with courage

© 2007 THE PACHERA GROUP

Contact

Mike Vanneman mvanneman@thepacheragroup.com(408) 464-6780

LinkedIn, Facebook, Plaxo

© 2007 THE PACHERA GROUP

Thank you!