SurveyMonkey Inc. 2017 Sales Incentive Plan
Exhibit 10.7
CONFIDENTIAL
SURVEYMONKEY
FY17 SALES INCENTIVE PLAN
(Effective September 1, 2017 and subject to the FY17 Sales Incentive Plan Policies, Terms and Conditions)
Sales Executive
Plan Contents:
| • | This Plan Design & Acknowledgement Sheet (the “Details Sheet”) |
| • | The Plan Policies, Terms, and Conditions (the “Plan Rules”) |
Plan Overview
SurveyMonkey’s Leadership is excited to have you on board and is pleased to present you with your FY17 Sales Incentive Plan, which is comprised of this document and the Plan Rules (the “Plan”). This is an exciting time to be at SurveyMonkey as we accelerate growth through building relationships with new and existing partners.
Our FY17 plan goals include the following:
| a) | align to company sales strategy and compensation philosophy |
| b) | reflect company revenue and profitability goals |
| c) | compensate individuals for their contribution to the business |
| d) | be market competitive and pay for performance to attract and retain high caliber sales talent |
This document must be read together with the Plan Rules. If there is any inconsistency between this document and the Plan Rules, this document will prevail to the extent of any inconsistency.
Plan Components
Your On Target Earnings (“OTE”) is comprised of:
| • | Base Salary |
| • | Commission-based Target Incentive (“TI”) |
Table 1: Plan Components
| Performance Measure | Mechanic | Performance Period | Payout Frequency | |||
| Corporate Sales New Bookings (80%) | Commission Formula | Annual | Monthly | |||
| SurveyMonkey New Bookings (20%) | Commission Formula | Annual | Monthly |
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CONFIDENTIAL
Plan Measure Details
A Transaction is “Booked” when it fulfills all of the following criteria:
| 1) | the Terms & Conditions of the transaction have been approved by the Company’s legal department |
| 2) | the Company’s Finance department has approved the transaction; and |
| 3) | the Company has received a copy of the fully executed sales agreement. |
Please see the Plan Rules for the terms governing definitions, crediting, splits, un-earnable commissions (de-bookings), reassignments, and new-hire practices.
Your commission payout is calculated by multiplying three things: 1) Percentage Attainment, 2) Accelerator Rate at that Percentage Attainment, and 3) Target Incentive (TI). The rate depends on level of total attainment. For attainment from 0-100% of Quota, the accelerator rate is 1.0x. For all attainment above 100%, the accelerator rate is 1.5x. Please see below for an example payout.
Table 2 below provides the commission rates for each tier.
Table 2: Measure Commission Rate Table
| Quota Attainment | Target Incentive | Accelerator Rate | ||
| 0% | 100% | 1x | ||
| >100% | 1.5x |
Monthly Payout Calculation Example
Example: $25M Annual Quota with $100K Annual Target Incentive and 80% measure weighting. Booked $2.5M in September
Calculation Example:
Step 1. Calculate your weighted incentive.
$100,000 Annual Incentive x 80% Measure Weighting = $80,000
Step 2. Calculate your commission payout in each tier of attainment based on your accelerator rates, then sum for total commission payout.
| Bookings | %QA | Rate | Target Incentive | Commission Earned in September | ||||||||||||||||||||||||||||
| 2.5M | = | 10 | % | x | 1x | x | $ | 80,000 | = | $ | 8,000.00 | |||||||||||||||||||||
| 2.5M | 10 | % | $ | 8,000.00 | ||||||||||||||||||||||||||||
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CONFIDENTIAL
Sales Executive
Employee Information and Total Pay Details
| Employee Name | John Schoenstein | Period | Annual | |||||
| Role Title | Sales Executive | Base Salary | $ | 300,000 | ||||
| Business Title | CSO | Target Incentive | $ | 300,000 | ||||
| Office | San Mateo | On Target Earnings | $ | 600,000 | ||||
| Effective Date | September 1, 2017 | Target Pay Mix | 50/50 | |||||
| Ramp Period (if any) | 4 Months |
Payments under the Plan may be subject to limitations, deductions, and withholding taxes.
Guarantee
During a guarantee period, you will be paid the greater of 1) guarantee amount or 2) Commissions earned.
| Guarantee Schedule | ||||||
| September | October | November | December | |||
| 100% | 100% | 100% | 100% | |||
| $25,000 | $25,000 | $25,000 | $25,000 | |||
Quota Details
| Measure | Quarter | Quota | ||||
| Q1 | $ | 6,644,421 | ||||
| Q2 | $ | 7,273,198 | ||||
| Corporate Sales New Bookings | Q3 | $ | 9,235,634 | |||
| Q4 | $ | 10,969,146 | ||||
| TOTAL | $ | 34,122,401 | ||||
| Q1 | $ | 49,494,863 | ||||
| Q2 | $ | 51,080,478 | ||||
| SurveyMonkey New Bookings | Q3 | $ | 53,262,012 | |||
| Q4 | $ | 55,337,006 | ||||
| TOTAL | $ | 209,174,359 | ||||
Commission Rate Details
| Quota Attainment | Target Incentive | Accelerator Rate | ||
| 0% | 100% | 1x | ||
| >100% | 1.5x |
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CONFIDENTIAL
Approval / Acceptance
The Plan is effective on September 1, 2017 and, subject to the Plan Rules, will replace, cancel and supersede any and all prior compensation plans or arrangements in effect.
Your participation in the Plan does not give you any right to continued employment with SurveyMonkey.
The Plan, including target incentive amounts and quotas, may be varied, amended, withdrawn or cancelled at any time in the absolute discretion of SurveyMonkey upon written notice to you from SurveyMonkey. However, no Plan Amendments to this Plan will have a retroactive effect on any Closed Transactions and such Transactions shall be subject to the terms and conditions in effect at the time the Booked Transaction converted to a Closed Transaction.
By signing below, you acknowledge and agree that:
| • | you have read and understood the Plan, and accept and agree to be bound by its terms; |
| • | any future commissions advanced under the Plan will be reduced by the pre-paid amount of any prior un-earnable commissions. If your employment with the Company is terminated for any reason before the un-earnable amount has been fully repaid to the Company, then you will be responsible for the repayment of any outstanding amount; and |
| • | you have had the opportunity to confer with an independent legal advisor in advance of signing below, and have either obtained such advice or declined to do so. |
Acknowledged & Agreed:
| Name | Signature | Date (m/d/y) | ||||
| CEO | Zander Lurie | /s/ Zander Lurie | September 12, 2017 | |||
| Name | Signature | Date (m/d/y) | ||||
| CSO | John Schoenstein | /s/ John Schoenstein | September 13, 2017 | |||
| Name | Signature | Date (m/d/y) | ||||
| Controller | Dharti Patel | /s/ Dharti Patel | September 14, 2017 | |||
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