Sample Investment Management Account Executive Sales
Account Executive Sales Compensation Agreement
Revision Date: ii _____________
This document describes the agreement between iii ______________ _
(“Company”) and iv (“Account Executive”) regarding terms related to compensation.
Company and Account Executive enter into this agreement whereby Account Executive provides investment services to the Company in return for compensation specified in this agreement.
This agreement covers the period starting from v and ends on
All compensations will be calculated and paid first month of every quarter, for the preceeding quarter. Compensations will be calculated and paid out as part of the next payroll cycle, following the month for which compensations are calculated.
viAccount Executive is due a base salary of vii , payable every viii_______________.
Targeted sales compensation for the full year is ix ________. The sales compensation is not capped.
Account Executive will be paid for all travel and lodging expenses related to sales activities. Auto travel will be reimbursed at the current federal reimbursement rate (Currently 0.37 cents per mile).
Account Executives will be required to maintain a cell phone as part of conducting the business. Account Executives will be provided an allowance of $50 per month for cell phone usage.
Client entertainment expenses will be reimbursed as following:
Meals: Reimbursable with receipts
Special Events: Must be pre-approved. Reimbursable with receipts.
Expenses will be reimbursed within 30 days of being presented with the receipts and a completed expense reimbursement form.
xInvestment Fees Compensation
Account executive gets credit for any new xiinvestment tranche / existing investment tranche from their customer accounts.
Compensations are calculated on the management fees collected for each tranche
Copyright, CellarStone Inc. 3
(calculated by prorating account management fees to individual tranches) and the management fees are calculated on Net Asset Value.
The management fees will be calculated at the following rate
Net Asset Value Gross Fees
Up to $10 Million 80 Bp
$10Million to $25Million 60 Bp
$25 Million and above 40 Bp
The xiiother fees will be 12B-1Fees and Platform Fees. The Net Fee will be calculated as (Gross Fees) – (12B-1Fees) + (Platform Fees)
For each separate tranche, the Account Executive gets paid compensations for a period of 3 years from the month the tranche was funded, according to the following schedule:
Year after investment Compensation Rate
First Year 15
Second Year 8
Third Year 4
The compensation amount is calculated at the above specified rate on the Net Fee collected and the amount will be treated as a compensation amount for the whole year.
Assuming Account Executive has brought a new investment of $8,000,000 and it is funded in the current month. The 25BP has been charged to-wards 12B-1 Fees and 35 BP has been charged to-wards Platform Fees.
Compensation will be calculated as following:
Gross Fee: 80BP
12B-1 Fee: 25BP
Platform Fee: 35BP
Net Fee Rate: 95 BP
Net Fee Amount: $76000
Comp Amount (Whole year)*: $11400
Comp Amount (Current Quarter): $2850
* This compensation amount will change from period to period based on new NAV.
xiiiQuarterly New Investment Bonus
Account Executive gets a bonus of xiv$5000 on every new tranche investment if the investment amount is greater than xv$10M. This bonus will be paid on quarterly basis.
Account Executive is provided a recoverable draw of $2,500 per month. The draw balance will be recovered as soon as possible from future earnings.
There is no cap on any payouts to the Account Executive.
Termination of Employment
On voluntary or involuntary termination of Account Executive employment with the Company, compensations will be paid on transactions dated prior to the termination date only. Any amounts owed to the Account Executive will be according to employment regulations after withholding taxes and other dues.
1. Account Executive agrees to follow all Federal and Local laws while engaged in providing services to the Company during the period of this agreement.
2. Account Executive shall not engage in any other employment during the term of this agreement. Company reserves the right to require Account Executive to terminate any such other employment at Company’s sole discretion.
3. Account Executive shall use the most ethical practices while engaging in any sales activity.
4. Account Executive agrees to protect all confidential material including prospect data, sales data, and client information belonging to the Company and shall take all reasonable care in making sure that such confidential material is not disbursed to anyone outside the company.
5. This entire agreement shall be governed by the laws of the State of
Company Account Executive
i Any part of this document can be changed or overridden based on your needs.
ii This date will give us information as to when this agreement was written and distinguish it from similar other agreements.
iii Fill out the company name here.
iv Fill out the sales person’s full name here.
v Enter the start and end date for the sales compensation plan effective period. Most companies use the calendar or fiscal year start and end dates for these values. Some companies may not have an end date specified.
vi Alternatively you can remove this section or phrase it such as “Base Salary is specified in a separate employment agreement.
vii Amount of base every payable period.
viii Weekly, Bi-weekly, Twice-monthly, Monthly, etc
ix If there is a targeted compensation for the full year, it can be entered here. Alternatively, this whole section can be removed.
x This incentive encourages new investments, by paying higher compensations.
xi Alternatively compensations can be due on new investments only.
xii Off-set fees, service fees, etc.
xiii This incentive encourages higher level investments, by paying bonus.
xiv Change appropriate values
xv Change appropriate values