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2023 Fox Valley Metrology Technician Compensation Plan

General

  • Purpose
    • The Fox Valley Metrology 2023 Technician Compensation Plan (hereinafter referred to as the "Compensation Plan") is established to direct the Participant to achieve goals assigned by the company.
  • Eligibility
    • Only those employees who are classified as a non-salaried member of the Fox Valley Metrology Technician Team and who have signed this form are eligible to participate in the compensation plan.
    • All participants must comply with all terms and conditions outlined in the plan and with general employment practices and policies of the company.
  • Effective Date
    • The compensation plan is effective between January 1, 2023 and December 31, 2023. This plan supersedes all plans and terms previously in effect.

 

Compensation Plan Details

  • Commission Split Credit Policies
    • The participant will only be rewarded a commission based on their demonstrated effort.
    • The technician submitting the lead will be credited a percentage payout of the available commission upon a successful completion of the sale, accordingly to the following

Type

Split Credit %

Calibration

25%

Precision Tools

25%

Capital Equipment

25%

 

  • Final determination of commission splits on an opportunity is reserved for the Vice President of Sales of Fox Valley Metrology.
  • Calibration Revenue Growth Commission
    • Each eligible participant will be paid a monthly Calibration Revenue Growth Commission upon the successful completion of each month.
    • The payout of this commission will be 10% of the total growth revenue secured in the eligible accounts, payable once the revenue is billed.
    • The growth payout will continue for one calendar year from the date the opportunity was marked as secured within the company designated CRM system.
  • Equipment Sales Commission
    • Any large equipment sale (Precision Tools or Capital Equipment) in which the total revenue is greater than $2,000 will be eligible for a commission incentive, provided it meets the other guidelines listed below.
    • The commission incentive of up to 20% of the gross margin secured by Fox Valley Metrology and will be paid to the participants involved in the sale, upon successful completion of the quarter in which the sale was secured.

 

Commission and Bonus Policies

  • Calibration Revenue Growth Commission Policies
    • For growth revenue to be eligible for commission payout, the opportunity must have been submitted through the company designated CRM system.
    • Growth from all sources will be considered. This includes current accounts, former accounts, accounts never converted and new accounts.
    • Outsourced calibrations will not count towards calibration revenue growth targets, due to its significantly lower profit margin.
    • The total sale must be above $500 in growth in order to be considered.
  • Equipment Sales Commission Policies
    • In order to be submitted for the equipment sales commission, the overall order must have a minimum of 15% Gross Profit for Fox Valley Metrology.
    • All opportunities must be marked as secured through the company designated CRM system for consideration of this commission.
    • Orders which are simply replacements of failed calibrations or damaged equipment will not be considered for commission, unless a significant upgrade of the equipment takes place.
    • The total sale must be above $2000 in order to be considered.
  • Calibration Discount Policies
    • In order to be submitted for the Calibration Revenue Growth Commission and the Annual Growth Threshold Bonus, the net discount for an account must be 15% or lower.
    • The net discount of an account will be calculated by the bump percentage less the discount percentage.
      • Example: XYZ Manufacturing is given an 10% Bump and a 5% Discount. The net discount for this account is 5%. Therefore, this account will be submitted for commission.
      • Example: ABC Manufacturing is given an 10% Bump and a 30% Discount. The net discount for this account is 20%. Therefore, this account will NOT be submitted for commission.
    • This will affect both existing accounts and new accounts secured over the duration of the compensation plan.

 

Incentive Payout Strategy

  • Incentive Payout Timing
    • Calibration revenue growth commissions will be calculated based off invoiced calibration revenue. The invoice must be sent to the customer prior to the end of the month for it to count for that month’s incentive payout.
    • Equipment commissions will be calculated once payment is received by the customer. Management reserves the right to pay these commissions out sooner.
  • Calibration Commission Payout Strategy
    • The incentive payment due to the participant will be made on the last payroll of each month.
    • Any incentive payment earned by an individual participant will be paid upon successful completion of the fiscal month in which the incentive was earned.
    • A written document, the “Personal Incentive Statement”, will be sent to each participant detailing his or her individual incentive payment for the previous month by the end of the day on the Monday prior to the scheduled payment. If these days happen to fall on a non-working day, the document will be delivered the last business day prior to the assigned date.
    • Upon receipt of the Personal Incentive Statement, participant has until the end of the day on the Monday prior to the scheduled payment to review the document and submit any dispute in the claims on the document. These disputes must be provided in writing to the participant’s manager. Due diligence will be made to settle any dispute prior to the scheduled incentive payment.
  • Additional Incentive Payout Strategy
    • Any large equipment commission earned by an individual participant will be paid upon successful completion of the fiscal quarter in which the incentive was earned.
    • These incentives will be detailed on the corresponding month’s Personal Incentive Statement and will be paid out on the corresponding payroll.

 

Payment Administration Policies

  • Ambiguities & Inconsistencies
    • Should there be any questions of interpretation regarding payments or earned amounts, the final authority for interpretation will reside with the VP of Sales.
  • Changes to the Plan
    • Fox Valley Metrology reserves the right to amend, modify or terminate the compensation plan at any time. Any such changes will be made in writing by the VP of Sales to all participants as far in advance as possible of the effective date of such change.
  • Conformance with State and Federal Law
    • If any term or condition of this compensation plan is found to be in non-conformance with a given state or federal law, that term or condition will be non-enforceable by Fox Valley Metrology.
    • Fox Valley Metrology will review and modify the term or condition that is in question to conform to such law in a timely manner.
    • This tem or condition in question will not negate or nullify any other terms or conditions of the compensation plan.
  • Rate Changes
    • Incentive rate changes are effective for the full month of the point of change. There will be no partial month incentive rate changes.
    • Incentive rate changes are effective from the date released and all future incentive payments will be based on the new revised incentive rates.
    • All previous payments prior to the revision date will remain unaltered. There are no retroactive changes for incentive payments.
  • Overpayment Recovery
    • When a participant is overpaid any incentive earnings, the participant is obligated to repay Fox Valley Metrology. The overpayment is a liability of the participant to Fox Valley Metrology until it is fully repaid.
    • This overpayment regards any erroneous additional payment made from Fox Valley Metrology to the participant in excess the amount intended, per this compensation plan. This includes, but is not limited to, errors in accounting and errors in paycheck creation.
    • Prior to the next incentive payment, all liabilities will be summed. The next incentive payment will be reduced by the sum of the liabilities. Liability recovery will come only from incentive payments, not from base salary pay while employed with Fox Valley Metrology.
    • If the liabilities are more than the next incentive payment due, the next incentive payment will be $0. Any remaining liability balance will be carried forward into the next payment period, until the liabilities are repaid in full.
    • Upon termination, any liability will be paid in full from final incentives due the employee. If there is a remaining liability after all the final incentive payments are considered, the participant’s base salary pay, accrued vacation, and any other sources will be applied to the liability balance.
    • This overpayment recovery policy will also come into effect any time a contract is canceled prior to the end of its original term. Any contract acquisition bonuses payed out previously, will be recouped by Fox Valley Metrology, persistent with the policies listed above.
    • Any invoiced payments to companies which file for bankruptcy and will not be received by Fox Valley Metrology, will also be subject to this policy.

 

Employment Terms & Policies

  • Employment at Will
    • Eligibility and participation in the compensation plan in no way implies or reflects any guarantee or contract of employment. Fox Valley Metrology operates on an “employment at will” basis.
    • Participation in the compensation plan does not confer any right to continue in the company’s employ or limit the right of the company to terminate the participant at any time.
  • New Participants
    • Any new participant, as defined by this compensation plan, will be eligible for full payout of the compensation plan upon successful completion of a 120-day probationary period.
    • Any commissions earned through a demonstrated effort prior to the completion of their probationary period by the Technician will be documented and paid out, along with his or her first incentive payout.
  • Authorized Extended Leave of Absence
    • Any incentives above base salary (bonus payouts, commission, etc.) secured during an authorized extended leave of absence (excluding vacation time) through a previous demonstrated effort by the individual participant will be held until return from the leave of absence. This will be paid in a lump sum upon return, along with the next incentive payout.
    • Upon returning from the leave of absence, the technician will be eligible for the standard, full compensation, as outlined in this compensation plan.
    • Should a technician not return to work after the approved leave of absence, all additional incentive earned after the start of the leave of absence will be forfeited by the participant.
  • Performance Improvement Plan
    • Management reserves the right to place anyone into a Performance Improvement Plan based on the criteria they select.
    • The participant of the Performance Improvement Plan will not be eligible for commissions and bonuses earned during the time period the Performance Improvement Plan is in place.
  • Termination
    • Participants who voluntarily or involuntarily terminate employment within Fox Valley Metrology, whether for cause or not, will be paid their base salary through the agreed upon termination date.
    • The participant will not be eligible for additional commissions above base salary earned prior to their final date of employment, not yet paid out. The participant must also return all company documents and property as well as settle any financial obligations owed to the company.