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2013 IC Plan

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Anonymous

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It looks ok but we will see on first payout. A couple things my skeptical side thinks:

1) changes to a bonus pan usually are NOT good for reps. They benefit corp.
2) changing to 2 payouts per year lets them earn interest on the $ for six more months per year.
3) still has so many variables and is not very transparent
 
































Anonymous said:
It looks ok but we will see on first payout. A couple things my skeptical side thinks:

1) changes to a bonus pan usually are NOT good for reps. They benefit corp.
2) changing to 2 payouts per year lets them earn interest on the $ for six more months per year.
3) still has so many variables and is not very transparent
Click to expand...


#2. Corporate payroll accounts are non interest bearing accounts. Hello-you must be a director or a regional manager only an idiot thinks this.
 








Anonymous said:
#2. Corporate payroll accounts are non interest bearing accounts. Hello-you must be a director or a regional manager only an idiot thinks this.
Click to expand...

Yes but the company saves a ton of money in processing fees. That is why some companies have 1st and 15th payouts = 24 check runs a year versus every other Friday = 26 check runs a year. Make no mistake this is a cost saving measure. I worked for ADP prior to Pharma and bonus check runs are costly even when simply added to a normal payroll check.
 




Anonymous said:
Yes but the company saves a ton of money in processing fees. That is why some companies have 1st and 15th payouts = 24 check runs a year versus every other Friday = 26 check runs a year. Make no mistake this is a cost saving measure. I worked for ADP prior to Pharma and bonus check runs are costly even when simply added to a normal payroll check.
Click to expand...

Its a cost of doing business. But in the grand scheme of things-not a a big deal. Finance and Ops budgets for bonus runs -whether in time and/or actual dollars spent to process the checks. The company would rather pay out giant bonuses due to huge rx numbers than cut costs. More revenue is a good thing not a bad thing. The problem with incentive comp plans is the delivery to the sale force. Most sales reps do not understand how they will be paid and as a result their ignorance shows up on sites like CP. Believe it or not corporations do not actively seek to screw their employees but make no mistake eisai can and will exist without me or you. There are hundreds of displaced reps who still would love to have our job; who really doesnt want a gig that pays 100K+ where you work 25-30 hours per week? When pharma realizes that they over pay for the psuedo relationships and route planning, everyone in the field is phucked.

To that idiot who thinks that the company allows money to "sit" in an interest bearing account I suggest that you take a simple community college finance or accounting class. Eisai certainly has accounts that earn interest-but these soft credit accounts use the interest earned to pay for banking fees-not to increase the net value of eisai checking accounts. If this were the case-eisai would be better off paying us 1 time per year and allow the hundreds of millions of revenue to simply accrue interest while sitting in the 1St National bank of Woodcliff lake.
 




To that idiot who thinks that the company allows money to "sit" in an interest bearing account I suggest that you take a simple community college finance or accounting class. Eisai certainly has accounts that earn interest-but these soft credit accounts use the interest earned to pay for banking fees-not to increase the net value of eisai checking accounts. If this were the case-eisai would be better off paying us 1 time per year and allow the hundreds of millions of revenue to simply accrue interest while sitting in the 1St National bank of Woodcliff lake.[/QUOTE]

That's coming next a once year payout. They DO earn interest on the $ dorks.
 








Anonymous said:
To that idiot who thinks that the company allows money to "sit" in an interest bearing account I suggest that you take a simple community college finance or accounting class. Eisai certainly has accounts that earn interest-but these soft credit accounts use the interest earned to pay for banking fees-not to increase the net value of eisai checking accounts. If this were the case-eisai would be better off paying us 1 time per year and allow the hundreds of millions of revenue to simply accrue interest while sitting in the 1St National bank of Woodcliff lake.
Click to expand...

That's coming next a once year payout. They DO earn interest on the $ dorks.[/QUOTE]

First there are companies that do exactly that in paying bonus. Most home office employees receive their bonus once a year. Some pharma companies, Lilly is one who comes to mind, has moved to this model for field sales people as well. I believe that GSK has moved to a similar model and is an MBO bonus. There are a couple things here, one you save money on anybody who is not employed at the time of the payout and it does decrease payroll costs. Secondly, in terms of only paying people once a year, besides the obvious that no one would come to work here, there are labor and taxation laws that prevent employers from extraneously delaying earned hourly or salaried wages to their employees. The GOV likes to get their payroll withholdings quarterly so the longest that I have heard of for normal wages being paid was one quarter - No four pay checks year per employee. From a tax collection and accounting standpoint that would still be extremely odd. I will also add that for bonus payout those funds are 100% in interest bearing accounts and depending on the size of your organization, current vs negotiated rates and risk tolerance, playing the ‘money game’ can prove quite lucrative. Think about a sales force of 1000 reps with average pay our of $40K that is $40M in bonus payout. I’ll let you do the financial calculations but common sense will tell you that it is lucrative for the company to hold that money as long as possible and earn interest on it. Happens all the time as bonus plans, generally speaking (read your IC plan documentation) are not guaranteed and payouts are at the discretion of the board. Regular wages are guaranteed under labor laws… you worked you get paid. Bonus, unless you have a contract, which none of you do, is again at the discretion of the board.

Maybe go to law school and learn about labor laws Mr. Community College finance guy…
 




Anonymous said:
That's coming next a once year payout. They DO earn interest on the $ dorks.
Click to expand...

First there are companies that do exactly that in paying bonus. Most home office employees receive their bonus once a year. Some pharma companies, Lilly is one who comes to mind, has moved to this model for field sales people as well. I believe that GSK has moved to a similar model and is an MBO bonus. There are a couple things here, one you save money on anybody who is not employed at the time of the payout and it does decrease payroll costs. Secondly, in terms of only paying people once a year, besides the obvious that no one would come to work here, there are labor and taxation laws that prevent employers from extraneously delaying earned hourly or salaried wages to their employees. The GOV likes to get their payroll withholdings quarterly so the longest that I have heard of for normal wages being paid was one quarter - No four pay checks year per employee. From a tax collection and accounting standpoint that would still be extremely odd. I will also add that for bonus payout those funds are 100% in interest bearing accounts and depending on the size of your organization, current vs negotiated rates and risk tolerance, playing the ‘money game’ can prove quite lucrative. Think about a sales force of 1000 reps with average pay our of $40K that is $40M in bonus payout. I’ll let you do the financial calculations but common sense will tell you that it is lucrative for the company to hold that money as long as possible and earn interest on it. Happens all the time as bonus plans, generally speaking (read your IC plan documentation) are not guaranteed and payouts are at the discretion of the board. Regular wages are guaranteed under labor laws… you worked you get paid. Bonus, unless you have a contract, which none of you do, is again at the discretion of the board.

Maybe go to law school and learn about labor laws Mr. Community College finance guy…[/QUOTE]

I have a an S corp and work for eisai. I pay myself 1 time per year and my partner receives 1 paycheck per year as well-we file quarterly income taxes but passthrough our income-only once per year. As for interest bearing accounts the previous poster was correct that Reg Q prevented coporations-and I think Eisai North American is a corporation, from having and using an interest bearing account. Monies were sweep into other vehicles to produce returns. reg q is defunt as of last july. But prior to last July it was 1933 where corporate accounts could be interest bearing accounts.

Maybe go to high school and learn about basic finance mister kardashian-attorney guy. Maybe you're the idiot who wants Eisai sales to form a union.
 








Anonymous said:
First there are companies that do exactly that in paying bonus. Most home office employees receive their bonus once a year. Some pharma companies, Lilly is one who comes to mind, has moved to this model for field sales people as well. I believe that GSK has moved to a similar model and is an MBO bonus. There are a couple things here, one you save money on anybody who is not employed at the time of the payout and it does decrease payroll costs. Secondly, in terms of only paying people once a year, besides the obvious that no one would come to work here, there are labor and taxation laws that prevent employers from extraneously delaying earned hourly or salaried wages to their employees. The GOV likes to get their payroll withholdings quarterly so the longest that I have heard of for normal wages being paid was one quarter - No four pay checks year per employee. From a tax collection and accounting standpoint that would still be extremeuly odd. I will also add that for bonus payout those funds are 100% in interest bearing accounts and depending on the size of your organization, current vs negotiated rates and risk tolerance, playing the ‘money game’ can prove quite lucrative. Think about a sales force of 1000 reps with average pay our of $40K that is $40M in bonus payout. I’ll let you do the financial calculations but common sense will tell you that it is lucrative for the company to hold that money as long as possible and earn interest on it. Happens all the time as bonus plans, generally speaking (read your IC plan documentation) are not guaranteed and payouts are at the discretion of the board. Regular wages are guaranteed under labor laws… you worked you get paid. Bonus, unless you have a contract, which none of you do, is again at the discretion of the board.

Maybe go to law school and learn about labor laws Mr. Community College finance guy…
Click to expand...

I have a an S corp and work for eisai. I pay myself 1 time per year and my partner receives 1 paycheck per year as well-we file quarterly income taxes but passthrough our income-only once per year. As for interest bearing accounts the previous poster was correct that Reg Q prevented coporations-and I think Eisai North American is a corporation, from having and using an interest bearing account. Monies were sweep into other vehicles to produce returns. reg q is defunt as of last july. But prior to last July it was 1933 where corporate accounts could be interest bearing accounts.

Maybe go to high school and learn about basic finance mister kardashian-attorney guy. Maybe you're the idiot who wants Eisai sales to form a union.[/QUOTE]

Thanks dummy! You're comparing an S corporation to a multinational corporation. Really? Sure hope Eisai works out for because as a person you are crap... Last I checked Eisai has more than 100 shareholders. Sure hope your windshield repair business works out!
 




Anonymous said:
I have a an S corp and work for eisai. I pay myself 1 time per year and my partner receives 1 paycheck per year as well-we file quarterly income taxes but passthrough our income-only once per year. As for interest bearing accounts the previous poster was correct that Reg Q prevented coporations-and I think Eisai North American is a corporation, from having and using an interest bearing account. Monies were sweep into other vehicles to produce returns. reg q is defunt as of last july. But prior to last July it was 1933 where corporate accounts could be interest bearing accounts.

Maybe go to high school and learn about basic finance mister kardashian-attorney guy. Maybe you're the idiot who wants Eisai sales to form a union.
Click to expand...

Thanks dummy! You're comparing an S corporation to a multinational corporation. Really? Sure hope Eisai works out for because as a person you are crap... Last I checked Eisai has more than 100 shareholders. Sure hope your windshield repair business works out![/QUOTE]

Uh oh...looks like your cracker jack law school degree didn't work for you? Do you work for Eisai Japan or Eisai North America? Maybe you have as many shares as the Naito foundation? I do like those annual stock grants-dont you?
 




Anonymous said:
Thanks dummy! You're comparing an S corporation to a multinational corporation. Really? Sure hope Eisai works out for because as a person you are crap... Last I checked Eisai has more than 100 shareholders. Sure hope your windshield repair business works out!
Click to expand...

Uh oh...looks like your cracker jack law school degree didn't work for you? Do you work for Eisai Japan or Eisai North America? Maybe you have as many shares as the Naito foundation? I do like those annual stock grants-dont you?[/QUOTE]

Not sure what your point is but Eisai, Inc. is a publicly traded company on the Nikkei. You can buy shares right now if you so chose.
 




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