Fundible account executives are responsible for generating new business and managing client relationships. Their primary role is to identify potential clients, initiate contact, present solutions, and close sales. As client-facing sales professionals, their compensation is heavily dependent on their ability to bring in new accounts and expand existing ones. Fundible account executives typically earn a base salary plus commissions and bonuses based on factors like new revenue generated and sales quotas met. Their total compensation can vary substantially based on experience, performance, and geographic location. This article will provide an in-depth look at how fundible account executives are paid and examine the key factors that impact their earning potential.
Base Salary
The base salary for fundible account executives typically ranges from $50,000 to $100,000. According to self-reported data on Glassdoor, the average base pay is around $72,500. Base salary provides a reliable source of income and may increase with tenure and promotions. More seasoned account executives at the senior or executive level can earn a base of $100,000 or more. Geographic location also impacts base pay, with account executives working in major metro areas like New York and San Francisco earning 10-20% higher salaries on average. While base provides a foundation, most of an account executive’s earning potential comes from commissions.
Commissions
Commissions make up the bulk of a fundible account executive’s total compensation. In addition to a base salary, they earn incremental pay based on a percentage of new sales generated. Commission rates typically range from 5-20% but can go up to 50% in some cases. The higher the commission percentage, the greater the potential to earn substantial income. For example, an account executive with a 10% commission rate who closes $5 million in new business would earn $500,000 in commissions. The commission structure rewards high performers who exceed sales targets. Many firms also have an acceleration tier where commission rates increase after hitting certain milestones. This provides additional incentive to drive new client acquisitions and expand existing accounts.
Bonuses
Bonuses are another opportunity for fundible account executives to supplement their base pay and commissions. Many firms offer annual bonuses of 10-30% of base salary tied to performance metrics like:
- Percentage of sales quota achieved
- Revenue generated
- New accounts landed
- Client retention rates
By hitting key benchmarks, account executives can earn sizable year-end bonuses. These incentivize continued growth of bookings and motivate cross-selling to existing clients. Some firms also reward longevity with bonuses paid after reaching certain tenure milestones.
Long-Term Incentives
For senior account executives and sales leaders at the director level and above, long-term incentives become an important part of the total rewards package. These can include:
- Equity awards – stock options or restricted stock units provide upside tied to company valuation and performance. They reward loyalty and align executives with shareholders.
- Deferred compensation – a portion of commissions can be deferred into retirement accounts.
- Sales prizes – contests, awards trips, and luxury prizes for top performers.
Long-term incentives promote retention of top talent while providing substantial wealth creation opportunities.
Key Factors Impacting Earning Potential
Within the typical compensation structure of base, commissions, and bonuses, there are several key factors that determine a fundible account executive’s total earnings.
Experience Level
Veteran account executives with 5-10+ years under their belt command higher base salaries and commission rates. They also receive larger bonuses and equity awards based on seniority.
Industry
Certain sectors like tech, pharmaceuticals, and financial services tend to pay higher due to commission potential.
Individual Performance
Star performers who consistently exceed quotas can earn exponentially more in commissions and bonuses than average.
Company Size
Larger firms tend to pay more and offer expanded bonus/equity programs.
Geography
Account executives in major metropolitan business centers earn 10-20%+ higher salaries than the national average.
Earning Potential by Career Level
While individual earnings depend on performance, deals closed, and other factors – here is an overview of the earning potential for fundible account executives by career level:
Entry Level (0-2 years experience)
- Base Salary: $50,000 – $65,000
- Commissions: $20,000 – $60,000
- Bonuses: Up to 20% of base
- Total Comp: $70,000 – $125,000
Mid-Level (3-7 years experience)
- Base Salary: $70,000 – $90,000
- Commissions: $100,000 – $200,000
- Bonuses: 20-30% of base
- Total Comp: $170,000 – $290,000
Senior (8-15 years experience)
- Base Salary: $90,000 – $120,000
- Commissions: $200,000 – $500,000+
- Bonuses: 30-50% of base
- Long-Term Incentives: Equity, deferred comp
- Total Comp: $250,000 – $600,000+
Executive/Enterprise (15+ years experience)
- Base Salary: $120,000 – $200,000+
- Commissions: $500,000+
- Bonuses: 50-100%+ of base
- Long-Term Incentives: Significant equity/deferred
- Total Comp: $600,000 – $1MM+
As fundible account executives advance in their careers, they can earn total compensation reaching into the high six figures and above through uncapped commission potential.
Conclusion
In summary, fundible account executives have substantial earning ability driven by commissions, bonuses, and long-term incentives. While base salary provides a foundation, top performers have the potential to earn well into the six figures based on their sales production. Senior account executives with an extensive book of business can make $500,000+ in total compensation. Location, industry, individual achievement, and company size all contribute to overall earning potential. With a lucrative commission-based model, fundible account executives have the opportunity to earn substantial incomes as they drive business growth, land new accounts, and expand relationships with existing clients.