Compensation - Arck System

ARCK SYSTEM Dewi Laraswati Anggraini 29115654

Background of Arck Company  Arck

Systems was a medium-sized manufacturer of enterprise servers, which are powerful network computers used in corporations to manage data.

 Provided

data management hardware to businesses through network servers.

 Provided

these servers to all sizes of businesses and types of industries

Background of Lux Company  Leading

provider of middleware

 Middleware

is software that acts as an itermediatery between software application so that they can exchange data

Arck Company Merger with Lux Company The reason for merger:  Enterprise  Software

software market growing quickly

gross margin doubled hardware

 Help

better integrated hardware to the software aplication

 Help

obtain a greater amount of enterprise knowledge and information to the Industry

THE DEAL 

 

Arck moved quickly to purchase Lux Software, making an all-stock offer which valued the company at 50% above its market capitalization. The deal included a delayed bonus provision In addition, core members of Lux Software’s engineering staff were given large stock option grants that vested if they stayed at the company for three years.

BUSINESS ISSUE There’s some problems since Arck merger with Lux : 

Arck and Lux sales representative have differing selling techniques and methods (hardware and software)



Targeting different decision makers



Differences in sales compensation plans at Arck and Lux

SOLUTION  Restructure

Sales Force

 Reevaluate

who we are hiring

 Redefine

terms of compensation, job expectation and company policies