Mongo DB Sales Compensation Analyst Challenge   Objective: In this challenge, you will help create an FY22 Compensation Model for 4 Account Executives (AEs)

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Mongo DB Sales Compensation Analyst Challenge

 

Objective:

In this challenge, you will help create an FY22 Compensation Model for 4 Account Executives (AEs). Each AE will have two Quota Targets: [1] New Annual Contract Value (NACV) & [2] Services. All relevant data (Account Executive data & Quota data) are shown on Page 2.

 

Your task is to create a model that shows the following for each AE:

· FY22 NACV Quota (Aggregate & broken out by month)

· FY22 Services Quota (Aggregate & broken out by month)

· FY22 Nominal Rate

 

After creating the model, please answer the following questions

1. Why do you think there are two separate target elements (NACV & Services)?

2. What other elements could be added to enhance the comp plan?

3. How would you evaluate the success of a comp plan?

4. What are some complexities you would anticipate in putting together comp models for a global sales organization?

 

Definitions:

· FY22: Fiscal Year 2022, which starts on 2/1/2021 and ends on 1/31/2022

· Account Executive: Sales Rep

· New Annual Contract Value (NACV): The annual value of a subscription that is new (think of it as annual revenue of a deal sold).

· Services: Consulting packages, training, and other non-recurring products; separate from NACV.

· Ramping Quota: Quota that a sales rep takes during the first 12 months of their tenure

· Ramped Quota: Quota that a sales rep takes from Months 13+ onwards

· Nominal Rate: Rate at which each dollar closed by the sales rep is paid

· Variable: The amount of an AE’s compensation that is tied to quotas

 

Additional Information:

· Feel free to create the model in any tool you feel comfortable with (Excel, Google Sheets, etc.)

· The comp model should show each AE’s quota for the full 2022 fiscal year

· If an AE joins after 2/1/21, then their quota should be prorated for the months that they have been onboard for FY22.

· Nominal Rate is a function of an AE’s Variable Pay, NACV Quota, and Services Quota (Each dollar of NACV closed is valued the same as each dollar of Services closed)

 

Account Executive Data:

Rep Name	Role	Start Date	Annual Variable Pay
Jason Long	Jr AE	2/1/2021	$75,000
Rob Jackson	AE	8/1/2021	$100,000
Maggie Smith	Sr AE	10/1/2016	$125,000
Mary Jones	AE	6/1/2020	$100,000

 

 

NACV Quota Data:

Role	Ramping (Months 1-12)	Ramped (13 Months+)
Jr AE	$675,000	$900,000
AE	$750,000	$1,000,000
Sr AE	$825,000	$1,100,000

 

 

PS Quota: 15% of NACV Quota

 

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