Kellogg Adopting Incentive Plan

Agencies to Work Under New Compensation Arrangement in 1999
CHICAGO–While top Kellogg executives were telling securities analysts last week to expect accelerated new product introductions in 1999, the company has been telling its roster shops to expect a new compensation arrangement.
According to sources, Kellogg has told its agencies that it intends to change how it pays them–and move from a flat-fee basis to a base-fee-plus-incentive arrangement, with those incentives tied to sales growth objectives. The arrangement will likely be put in place in the U.S.