What are y...

Question

What are your thoughts on the sales compensation plan at Red Hat ?

Current Employee · Accepted Answer

They’re changing comp plans to a hybrid ACV/ARR model as of this year. Tbd on what that actually looks like and how attainable the goals are, but Red hat is turning blue and IBMs influence isn’t making comp better..

Former Employee · Answer

Unattainable by design

Former Employee · Answer

Sales Comp was great if you are a part of the IBM DSC within the RedHat team you get your base plus a straight 3% commission on all Net New Sales and Renewals...very rare to find one that pays on renewals.

If Mark is still the team lead you'll love it.

Former Employee · Answer

When I worked there it was a little low.  Red Hat has done a great job, matching or going over market expectations. (I learned from colleagues and pay transparency online)

Current Employee · Answer

The ACV/ARR model works really well for banner accounts where the deal structure is very lumpy, so that is a positive.

It means you can't really blow your number out of the water that easily, though.

There is a split payout system with a recoverable draw now, and your actual final payout is 2 months after quarter end instead of 1.  It means they get more time to calculate out stuff, but it takes longer to get paid on what you sell.  For me, I think about it as ARR pays my draw and ACV pays my final statement every quarter, but if you haven't attained in awhile and then finally hit your mark, it takes a long time for it to catch up to you.  It's designed to keep you from leaving the company sooner so you get paid out on what you earn.  It benefits long-timers and punishes short-time sales stints.

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Anonymous Q&A

What are your thoughts on the sales compensation plan at Red Hat ?