MAR4403 UFL Madison Fiber Corporation Sales Compensation System

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The senior management team at Madison Fiber Corporation is considering altering the system by which
their salesforce is paid. All the concerned parties (e.g., the salespeople; the sales manager; the VP
Marketing etc.) seem to have conflicting views on what the “best” course of action is in terms of any type
of change to the salesforce compensation system. Some even suggest doing nothing, leaving the current
system – 100% salary, plus a “subjectively assessed” annual bonus – in place.

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