A Silicon Valley start up plans to start shipping its TrueComp variable compensation management software this month, which enables finance executives to manage employee bonuses and sales commissions.
According to market research firm, the Gartner Group, public companies can spend as much as 12 per cent of their total revenues on commissions and bonuses, while in the stock broking sector this can rise to 50 per cent, and as a result, Callidus Software had enterprises lining up to beta test its new offering.
Some 30 neighbouring Silicon Valley hi tech companies - most of whom have large sales forces - volunteered to be beta testers when invited, but the number was finally whittled down to five - Sybase, Cadence Design Systems, Adaptec, Netscape and Newbridge Networks.
Tammy Alderman, Newbridge Networks senior compensation analyst, said:."From our very first meeting, it was clear that Callidus Software understands the issues that make sales compensation administration difficult."
Callidus believes that Truecomp can benefit public companies because under or over accrual of money to cover variables such as bonuses and commission can affect their financial performance and ultimately their stock price and value. A surprise under accrual could result in less profits, which would dent Wall Street?s confidence, while over accrual could have the same affect.
The Truecomp suite, which includes Truecomp Server, Truecomp Modeler, Truecomp Manager, and Truecomp Viewer, enables users to budget for, administer, reconcile and audit variable expenses and forecast fixed expenses. Financial and business managers can also review the results to ensure that incremental expenses provide incremental benefits.
The offering is written in Java and has a component based architecture to break down complex compensation issues into manageable pieces. A fully customisable rules engine enables executives to apply compensation policies to large groups of employees and ensure accurate compensation calculations, while Web based reporting capabilities gives all authorised employees access to information.
Callidus raised $16 million in venture capital in January to add to the $10 million it has raised since its 1996 launch.
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