Here's a question that separates the professionals from the amateurs: do you have a complete governance package for your sales compensation program?
Not a comp plan. A governance package.
The plan tells reps how they get paid. The governance package tells your organization how the plan is managed, changed, enforced, and protected.
Most companies have zero written policies.
I'm not exaggerating. I've walked into organizations running $50M+ incentive programs with no written policy on clawbacks, no exception approval framework, no change management protocol, and no dispute resolution process. Everything is handled "by feel." Which works great until it doesn't—and when it doesn't, it's usually expensive, public, and legally discoverable.
The 17 SCP Policies
We've codified 17 Sales Compensation Policies that cover the full governance surface area. Every one of them is a policy you either have and enforce, or don't have and are exposed.
Plan Governance:
- SCP-001: Plan Document Standards — What must every plan include?
- SCP-002: Plan Approval Authority — Who can approve plan changes?
- SCP-003: Mid-Year Plan Changes — When and how can plans change?
- SCP-004: Plan Communication Requirements — How are plans communicated?
Financial Controls:
- SCP-005: Clawback & Forfeiture — When can you take money back?
- SCP-006: Windfall Prevention — How do you handle outsized payouts?
- SCP-007: 409A & Deferred Comp — Are your plans compliant?
- SCP-008: True-Up & Reconciliation — How do you handle corrections?
Operational Framework:
- SCP-009: Exception Management — How are exceptions categorized, approved, and tracked?
- SCP-010: Dispute Resolution — What's the process when reps challenge their pay?
- SCP-011: Split & Overlay Crediting — Who gets credit when multiple reps are involved?
- SCP-012: Territory Change Protocol — What happens to quotas and pipeline when territories shift?
Data & Compliance:
- SCP-013: Data Source Authority — Which systems are the source of truth?
- SCP-014: Calculation Audit Trail — Can you trace any payout back to its source?
- SCP-015: Separation of Duties — Who can change what, and who checks them?
- SCP-016: Regulatory Compliance — How do you stay current with pay equity, tax, and labor laws?
- SCP-017: Termination & Leave — What happens to comp when reps leave or go on leave?
The Self-Assessment
Go through that list. For each policy, ask yourself three questions:
1. Do we have a written policy? Not a verbal understanding—a written, approved document.
2. Is it enforced consistently? Not just when convenient—every time.
3. Can we prove it? Not just claim it—produce the evidence.
If you answered "no" to any of those for any policy, you have a governance gap. And governance gaps have a way of becoming governance crises at the worst possible time.
Do You Have a Complete Governance Package?
Most organizations cover 4-5 of these 17. Some cover 8-10. Almost nobody covers all 17. The ones who do are the ones who sleep soundly during audit season.
We've published all 17 policies with detailed descriptions, implementation guidance, and real-world examples. It's the most complete SPM governance reference available—and it's free.
The question isn't whether you need these policies. The question is which ones are going to bite you first.
Read the full 17 SCP Policies at intelligentspm.com/learn/policies — each one with detailed descriptions, categories, and implementation guidance.
Not sure which policies you're missing? Take The Checkup—our SPM health assessment identifies your governance gaps in about 10 minutes.
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