Towers Perrin and Synygy Release Survey Findings on Sales Incentive Plan Design and Governance in the Pharmaceutical Industry

Includes Responses from Some 40 Organizations Representing More Than 78,000
Salespeople
STAMFORD, Conn. & CHESTER, Pa.--(Business Wire)--
Global professional services firm Towers Perrin and sales performance management
solutions provider Synygy Inc. today released the findings of this year`s survey
on Strategic Sales Incentive Plan Design and Governance in the Pharmaceutical
Industry.

The fifth such study sponsored and produced by Synygy and Towers Perrin, this
year`s survey focused on the compensation plan design and governance practices
for primary care sales representatives, specialty sales forces, hospital
representatives, and managed care account executives.

Compiled from the responses of more than 40 pharmaceutical organizations
representing more than 78,000 sales representatives, the findings are a key
information source for professionals in sales, sales operations, finance, HR,
and others responsible for the design and analysis of pharma sales compensation
plans.

Key findings indicate:

* Despite significant change in the economy and the industry, fixed and variable
pay ratios did not change significantly when compared to previous years.
* Plan designs reflected the impact of the recession in a variety of ways,
including: modification of payout curves, defining more stable performance
measures, changing use of contests and SPIFFs, adjusting quotas, discretionary
fund usage, and/or increased use of caps.
* Despite decreased visibility and forecast uncertainty caused by economic
conditions, quota-based plans continue to dominate. However, companies reported
an increased tendency to make quota adjustments when the underlying assumptions
turn out to be flawed. Some indicated that they simplified quota-setting
methodologies, possibly because of reduced faith in market potential estimates.

"We appreciate the willingness of so many companies to share their insight and
experiences," said Mark A. Stiffler, Synygy president and CEO. "The cumulative
findings from these annual surveys contributes greatly to the body of knowledge
about how the pharmaceutical industry overall designs and manages incentive
compensation plans."

"The survey offers a unique and in-depth view of how pharmaceutical sales
compensation plans continue to evolve and adapt to the profound changes in the
industry," added Mark Flavin, a Towers Perrin principal who leads the firm`s
global Sales Force Effectiveness and Rewards practice. "Although pharma
companies are engaged in some dramatic rethinking of their go-to-market models,
their direct sales forces remain their primary marketing vehicles. Optimizing
the sales compensation investment is a key business driver for these
organizations."

For more information on the 2009 Survey of Strategic Sales Incentive Plan Design
and Governance in the Pharmaceutical Industry, contact Erich Sachse, Synygy
managing consultant, at (610) 494-3300 ext. 7280 or at sachse@synygy.com; or
Elliot Scott, Towers Perrin senior consultant, at (212) 309-3679 or
elliot.scott@towersperrin.com.

About Synygy

Synygy is the largest and most experienced provider of sales performance
management (SPM) software and services. These include SPM solutions for: sales
compensation management (incentive compensation; rewards and recognition; and
total compensation); sales communications management (sales portals; reporting,
dashboards and analytics; and analysis, alerts and answers); sales goal
management (territories and channels; pipeline analysis and forecasting; and
quotas and objectives); and sales process management (recruiting, evaluating and
training; workflow processes; and data repository and data processes). Based in
Chester, Pennsylvania, with extensive operations in Europe and Asia, Synygy has
achieved 18 continuous years of success. www.synygy.com

About Towers Perrin

Towers Perrin is a global professional services firm that helps organizations
improve performance through effective people, risk and financial management. The
firm provides innovative solutions in the areas of human capital strategy,
program design and management, and in the areas of risk and capital management,
insurance and reinsurance intermediary services, and actuarial consulting.
Towers Perrin has offices and alliance partners in the United States, Canada,
Europe, Asia, Latin America, South Africa, Australia, New Zealand and the Middle
East. More information about Towers Perrin is available at
www.towersperrin.com.

Synygy Inc.
Sue St. Laurent, 610-494-3300 x7259
St.laurent@synygy.com
or
Towers Perrin
Joe Conway, 914-745-4175
joseph.p.conway@towersperrin.com

Copyright Business Wire 2009