Case Study
Specialty Chemicals Distributor – Sales Compensation Revamp
Challenge
A leading specialty chemicals distributor sought to revamp its sales compensation structure to drive new business development. The Chief Commercial Officer (CCO) and Chief Human Resources Officer (CHRO) were concerned that the sales team had grown complacent, relying too heavily on existing accounts rather than pursuing new opportunities.
Given the industry’s competitive nature—where senior sales reps can easily transition across firms with their client relationships—ensuring a competitive and fair compensation structure was critical. Complicating matters, the company operated under an Employee Stock Ownership Plan (ESOP) model, requiring a unique approach to incentives.
Solution
1. Market benchmarking Competitor Analysis
- We identified similarly sized specialty chemical distributors to benchmark compensation structures.
- Our research focused on firms with comparable revenue, employee count, and sales team structure to ensure meaningful insights.
2. Expert Sourcing & Screening
- We facilitated blinded consultation calls between the client’s internal team (CRO, CHRO, and an internal strategist) and the selected experts.
- The client’s identity remained confidential throughout the process, preventing market speculation or competitor awareness.
- Anonymity was particularly crucial in this tight-knit industry, where competitive intelligence leaks could have strategic consequences.
3. Confidential Consultations & Anonymity Protection
- We sourced former C-suite executives and sales compensation leaders from competitor firms, ensuring no conflicts of interest.
- Experts were no more than two years removed from their roles, providing up-to-date and actionable insights on compensation best practices.
- Each expert underwent a rigorous 15–20 minute screening process, where we assessed their first-hand experience with sales compensation models.
4. Deliverables & Outcome
- The client received detailed call transcripts, allowing them to revisit insights and refine their approach.
- The expertise gained directly influenced their new sales compensation structure, ensuring alignment with industry best practices while maintaining employee motivation and retention.
