P&G's New Compensation Plan Gets 2 Cheers

Agencies Generally Favor Long-Awaited ‘Media-Neutral’ System
NEW YORK–Procter & Gamble’s shift toward compensating agencies based on sales results–rather than on billings–was generally applauded by roster agencies and observers last week, even though the move was a long time coming.
“It’s going to motivate us more to sell products,” said Pat McGrath, chairman and CEO of Jordan McGrath Case & Partners/Euro RSCG, which handles three P&G brands. “That’s our job, isn’t it?”
P&G’s global marketing officer, Bob Wehling, said the new system would encourage “holistic, media-neutral marketing,” and agencies would be compensated based on “global results.”