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Listen "One Month to a More Effective Compliance Program: Day 10 - Sales Incentives and Compliance"
Episode Synopsis
In the DOJ’s 2023 ECCP, Incentives and Disciplinary Measures it stated:
Incentive System – Has the company considered the implications of its incentives and rewards on compliance? How does the company incentivize compliance and ethical behavior? Have there been specific examples of actions taken (e.g., promotions or awards denied) as a result of compliance and ethics considerations? Who determines the compensation, including bonuses, as well as discipline and promotion of compliance personnel?
In this podcast episode titled "Sales Incentives and Compliance," Tom Fox explores the risks and consequences of misaligned sales incentives. Using the Wells Fargo scandal as an example, Fox discusses how a flawed incentive program can lead to compliance failures. He emphasizes the importance of aligning incentives with compliance goals and highlights the role of human resources in implementing effective compliance programs. The podcast warns that sales incentive programs can become high risk or even illegal if not properly designed and monitored. It concludes by emphasizing the significance of HR's involvement in creating a more effective compliance program and its impact on overall organizational success.
Three key takeaways:
Even a benign sales incentive program came become skewed.
A sales incentive program can become high risk or illegal if not properly monitored.
If there is alignment between the strategy, purpose and structure of an incentive system, it often makes the difference between a good and a bad one.
For more information, check out The Compliance Handbook, 4th edition here.
Learn more about your ad choices. Visit megaphone.fm/adchoices
Incentive System – Has the company considered the implications of its incentives and rewards on compliance? How does the company incentivize compliance and ethical behavior? Have there been specific examples of actions taken (e.g., promotions or awards denied) as a result of compliance and ethics considerations? Who determines the compensation, including bonuses, as well as discipline and promotion of compliance personnel?
In this podcast episode titled "Sales Incentives and Compliance," Tom Fox explores the risks and consequences of misaligned sales incentives. Using the Wells Fargo scandal as an example, Fox discusses how a flawed incentive program can lead to compliance failures. He emphasizes the importance of aligning incentives with compliance goals and highlights the role of human resources in implementing effective compliance programs. The podcast warns that sales incentive programs can become high risk or even illegal if not properly designed and monitored. It concludes by emphasizing the significance of HR's involvement in creating a more effective compliance program and its impact on overall organizational success.
Three key takeaways:
Even a benign sales incentive program came become skewed.
A sales incentive program can become high risk or illegal if not properly monitored.
If there is alignment between the strategy, purpose and structure of an incentive system, it often makes the difference between a good and a bad one.
For more information, check out The Compliance Handbook, 4th edition here.
Learn more about your ad choices. Visit megaphone.fm/adchoices
More episodes of the podcast 31 Days to a More Effective Compliance Program
Day 28 - The Importance of Data Governance
28/01/2025
Day 26 - CCO Authority and Independence
26/01/2025
Day 24 - Internal Reporting and Triage
24/01/2025
Day 23 - Investigative Protocols
23/01/2025
Day 22 - Levels of Due Diligence
22/01/2025
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