May
12
Over Half of Agency Compensation Deals Involve Pay-for-Performance
Posted in: Uncategorized
Bryan Wiener calls them “perverse.” Scott Chapman thinks they can be flawed. And Harris Diamond is a “strong believer” in the concept.
Several of McCann WorldGroup’s clients have implemented such arrangements and Harris Diamond, the agency’s chairman-CEO, says he thinks more will follow.
“I’m a strong believer in incentivization,” he said. “The issue is the definition. Is it a true incentivization? It has to have a shared-reward aspect — it can’t be just to get back to where you were on basic costs. These contracts require a lot of thought on both sides, and not all clients are willing to take that risk and maybe have to pay us more, so sometimes the talks go nowhere.”
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