Jan 23 Video Message for AMs - Comp and Quota

Agenda Overview

Q1 Priorities

• Regional Leader MBOs (Management by Objectives): A critical framework outlining the key objectives for regional leaders in Q1.

• Keeping Our Promises: Emphasizing the importance of accountability and commitment to our goals and stakeholders.

• Q1 Compensation Plan: Detailed structure of the compensation plan for Q1, designed to motivate and reward team members.

• Q1 Quota: Establishing clear performance expectations to drive sales and operational success in the first quarter.

2025 Regional Leader Priorities

Lead

• Overcommunication: Cultivating a culture of transparency and open communication to ensure all team members are informed and engaged.

• Resource Optimization: Efficiently utilizing available resources to maximize productivity and reduce waste.

• Constant Inspection (GM model): Regularly reviewing operations to ensure goals are being met and adjustments can be made proactively.

Grow

• High Quality Activities: Focusing efforts on activities that yield the highest returns and align with strategic objectives.

• Market Development: Identifying and targeting new market opportunities to expand the reach of our products.

• VTE-E Program Building Case Growth: Implementing strategies to build capabilities and drive case growth through the Value-Through-Execution (VTE) approach.

Transform

• Artix Execution: Successfully implementing Artix initiatives to enhance patient engagement and product utilization.

• AVT Force Multiplication: Leveraging AVT capabilities to increase overall productivity and achieve greater sales outcomes.

• 2025 Launches (FT G5, InThrill, Crossing): Preparing for major product launches that are critical to our growth strategy.

• Portfolio Selling: Enhancing our sales approach to focus on selling portfolios rather than individual products to maximize overall revenue.

Regional Leader Q1 MBOs

• Case Growth + Artix FMR Lead: Aiming to treat more patients by improving our field medical response capabilities.

• QPR Adoption: Implementing Quality Performance Reporting across teams to track and improve performance metrics.

• "Snapshot QPR" (AMs and/or AAMs): Establishing interim performance snapshots to quickly identify and address gaps in production.

• QPR 3.0 + QPR 2.0 (Regional Leaders + BDMs): Refining our Quality Performance Reporting processes for continuous improvement.

• Penetrate ED: Strategizing to increase our presence in Emergency Departments.

• Close-The-Loop: Grow: Extend Reach: Implementing feedback mechanisms to refine strategies and enhance growth initiatives.

• Launch Artix: Ensuring that all team members are trained and certified to launch Artix effectively.

• 100% of team trained and certified: Aiming for full certification across teams to uphold quality standards.

• All AMs present approved Artix business plan: Securing stakeholder buy-in for the Artix business strategy.

• Artix FMR = Min. of 6 ISOs per region: Establishing a minimum standard for Integrated Sales Operations across regions.

Q1 2025 MBOs

• Transform: Portfolio Leverage AVT Growth: Driving portfolio sales to exceed an average sales target of 2.5 per Account Manager in Q1.

• Sales Operations to calculate EOQ metrics: Ensuring end-of-quarter metrics are assessed for performance analysis.

• Q1 2025 BONUS MBOs: Although not mandatory, bonus eligibility will be linked to effective execution of these objectives.

• Responsibility on Regional Sales Leader for confirming MBO completion: Establishing accountability measures for monitoring MBO progress.

• Final MBO calculations need AVP approval: Ensuring that MBO results correlate with our overall strategic objectives before finalization.

Keeping Our Promises

Quota Overview

• Q1 is a re-set quarter: Recognizing that previous quarter performances will influence current allocations, emphasizing a fresh start.

• AVPs and RSDs titrating AM-level quotas based on past performance: Customizing quotas to reflect individual team member capabilities and contributions.

Artix Updates

• Addressed process issues, re-activating LMR around 2/17: Reviewing and correcting previous limitations in the Market Launch Readiness, expected to last under 3 weeks.

• Compensation Plan: Returning to a legacy structure with incentive adjustments designed to drive engagement.

• Added incentives: Offering additional financial bonuses for exceeding performance thresholds, motivating teams to achieve their allocations.

Artix FMR Update

• Artix Launches in Q1: Scheduled launches that are critical for market penetration and revenue generation.

• Manufacturing Update: Highlighting resolutions to production issues to ensure timely product availability.

• Launch Timing: Targeting early March for a successful launch following a short Market Launch Readiness

• Q1 Target: Aiming for significant sales targets for Artix, with the potential for high revenue generation.

• Action Items: Engaging actively with healthcare professionals to improve uptake using provided resources.

Quota Logic

Phase 1: Q1 Math

• Q1 quotas aligned with Q4 at the National level: Setting expectations that reflect not only past results but anticipated future performance.

Phase 2: Local Optimization

• AVPs to balance quotas regionally; final assignments communicated to AMs during the week: Ensuring clarity and fairness in quota distribution.

AM Incentive Plan

Objectives

• Simplify: Streamlining the incentive plans for clarity and ease of understanding.

• Return: Shifting to a straightforward incentive structure with direct correlations to sales performance.

• Enrich: Introducing milestone payouts based on overachievement to drive performance.

AM Incentive Curve

• Comparison of Q1 2025 Incentive vs. Q2 2024: Evaluating the effectiveness and competitiveness of the incentive scheme.

• Milestone Payouts: Enhancing cash payouts for milestone achievements—mapping out a clear path to success.

Full Q1 AM Incentive Plan

Coverage

• OOT (Out Of Territory) Coverage remains unchanged: Maintaining consistent coverage policies across territories.

Overachievement

• 20% payout on every overachievement dollar: Encouraging sales teams to exceed targets.

New Product and Emerging Therapies

• Incentives adjusted for 1 unit of RC/VC, with penalties for non-participation in sales: Structuring penalties to encourage involvement and commitment across new product categories.

AVT Quota

Importance of AVT

• Critical growth driver; participation needed from all AMs: Ensuring all account managers contribute to AVT sales as a primary growth strategy.

Impact on Commissions

• Lack of AVT sales will reduce Q1 commissions by $1,500: Highlighting the importance of AVT sales performance on overall compensation.

Artix Incentives

Incentive Structure

• Cases through March 2: Offering substantial incentives for early cases submitted, fostering urgency.

• Training Requirements: Mandating completion of training to qualify for earning incentives to ensure competence and compliance.

Mindset and Culture

Cultural Focus

• Create a growth-centric culture within teams: By fostering a mindset of growth, teams will be motivated to innovate and push for better results.

Execution Strategy

• Intensified, deliberate activities required: Emphasizing the necessity for focused, strategic efforts in executing business plans.

Resilience and Challenge

• Embrace the challenge of achieving case growth: Encouraging a resilient approach to overcoming obstacles in reaching strategic goals.