If a Rep Switches Products Because of Comp, Your Plan Is Working Against You

Ajay Erogbogbo is VP and Head of Revenue Operations and Strategic Initiatives at Pathward, a publicly listed financial holding company, where he designs incentive comp for commercial lending officers. In this episode, he breaks down how variable comp works when it's tied to loan origination volume with two-year clawback windows, why standardizing comp across product lines creates distortion when the risk profiles are different, and how he distinguishes between a performance issue and a design issue during monthly reviews. He also covers why the biggest structural comp mistake is designing for what's easy to measure rather than what creates value, and how giving BDOs a simulator to model their earnings changes the entire plan rollout conversation.