Kellogg Shops Face Pay Change

Incentive Scheme Could Raise, But Will Likely Cut, Agency Revenues
CHICAGO–Kellogg Co. will abandon its flat-fee agency compensation structure for a plan that offers a base-fee-plus-incentive arrangement tied to sales performance. The move could hurt roster shops’ bottom lines, sources said.
That arrangement will likely be implemented in the U.S. early in 1999, then extended to North America and finally enacted globally by the middle of next year, sources said.
A Kellogg representative said it is “company policy not to discuss its compensation” arrangements.
The Battle Creek, Mich.-based