GitLab has introduced the GitLab Sales Compensation Plan, as specified in this Master Plan Document (the "Plan"), to develop the highest quality global organization by attracting, retaining and rewarding eligible GitLab contributors (“Participants”) who reach and exceed their sales, revenue and individual performance goals. “GitLab” is defined as the employing/contracting legal entity of the applicable Participant (from among the GitLab group of Companies, which is comprised of GitLab Inc., GitLab BV and any of its’ direct or indirect subsidiaries or affiliates).
Except as required by applicable law, nothing in this Plan or any Participant Schedule is intended to create or amend any existing employment or contractor agreement for a particular term with any Participant.
Participants are reminded that in addition to their eligibility for Commissions and Bonuses, they are paid a Base Salary or Base Contractor Fee, which entitles GitLab to expect that: each Participant will act in GitLab’s best interest even if it does not result in commissions or bonuses paid to them; Participants will assist others in earning business for GitLab, even if it does not result in commissions or bonuses paid to them; and that Participants will perform all other duties and responsibilities required or assigned to them.
Capitalized terms found in the text of the Plan shall have the following meaning:
This Plan is effective for all Commissions or Bonuses calculated for payment or otherwise earned hereunder during the Plan term as defined in a Participant Schedule. This Plan will remain in effect as the governing plan until explicitly amended or replaced by another plan, as can be demonstrated in writing. However, each Participant Schedule shall be effective only for the period designated on each such Participant Schedule unless extended by writing (including email) by the Company. As of the Effective Date, this Plan supersedes and replaces all prior plans regarding the payment of commissions, bonuses and similar incentive compensation by GitLab.
No GitLab contributor shall become a Participant in this Plan unless and until (i) such contributor accepts the terms and conditions of this Plan and the applicable contributor's individual Participant Schedule as provided by GitLab by signing such Participant Schedule and returning it to GitLab, and (ii) an authorized representative of GitLab signs and returns a fully executed Participant Schedule to the Participant, to the extent permitted by applicable law.
The following activities are expected requirements of the Participant in order to close a Sales Agreement with a Customer. These expected requirements, must be conducted to ensure Participants eligibility for payment of Commissions under this Plan.
A. Each Participant shall, in coordination with their sales manager, engage in the following activities:
Provide detailed written (and input into SFDC system) information to GitLab about the Customer or prospective New Customer, as well as said Customer’s contact person(s), including: (a) the name, title, address, and phone number of such Customer and its contact person(s); (b) the approximate dates and substance of any prior discussions with such Customer relating to GitLab’s products and services; and (c) provide outlines or other documentation of such Customer's business issues, key concerns, needs, the suggested sales strategy for GitLab, and other relevant information. Deliver presentation(s) related to GitLab’s products and services; Develop the proof of concept or solution demo, as required, of GitLab’s product and secure the technical recommendation from the Customer or the prospective New Customer; Work with the appropriate GitLab personnel to establish a competitive quote for the products and services or increase the size (i.e., the price) of the Sales Agreement; Pursue signature for the Sales Agreement (which must be pre-approved by GitLab) or accelerate the Customer’s or the prospective New Customer's signature thereof; Assist in the collection of all invoices and expenses, and provide meaningful assistance to GitLab in the resolution of disputes or project issues with the Customer; and Engage in any other activity requested by GitLab with the intent of promoting GitLab and its products and services.
B. In addition to the above, Participants in GitLab management roles shall, engage in the following activities:
Assist other GitLab personnel in any or all of the activities stated above; Manage and supervise the proper delivery of GitLab’s products and services in accordance with the applicable terms of the Customer contract and Sales Agreement; Maintain the morale of assigned team members and inspire excellence in the performance and delivery of GitLab’s products and services; Manage and maintain relationships with Customer personnel and lay the groundwork for the sale of additional GitLab products and services to the Customer; Maintain a constant awareness of the Customer’s technology needs and promptly advise the relevant GitLab personnel of new opportunities for the sale of additional products and services to the Customer; and Engage in any other activity requested by GitLab with the intent of promoting GitLab and its products. Participants in this Plan may not participate in any other GitLab commission or bonus plan unless approved in writing by the CEO or CFO. Payments, if any, under this Plan shall be made in addition to Participant’s base Salary. For the avoidance of doubt, Pre-Earned Commission Payout(s) shall not constitute as an Earned Commission unless and until, (i) a Sales Agreement has been executed between GitLab and Customer, (ii) the full amount(s) stated within the Sales Agreement have been invoiced to Customer, and (iii) the full amount(s) stated within the applicable invoice have been paid in full, all of which must occur during the period of Participant’s employment at GitLab. To the extent permitted by applicable law, no Commissions or Bonuses, including Earned Commission(s), may be extended to a former Participant following termination of the Participant's employment with GitLab unless specified in a Participant’s Schedule or unless authorized by GitLab in writing by the CEO or CFO.
Subject to this Plan, and all other employment obligations agreed to by Participant as an employee of GitLab, including but not limited to, the Code of Business Conduct &Ethics as stated at https://about.gitlab.com/handbook/people-group/code-of-conduct/#code-of-business-conduct–ethics, Participants shall perform in an ethical manner at all times. Managers are responsible for ensuring that their employees, including new employees, are aware of these standards and their responsibility for compliance. Any actions that violate the values of the Company, including those listed below and in the Company's policies, subject a Participant to possible corrective or disciplinary action, up to and including termination of employment or of a contract for services. Participants should leverage themselves in accounts through cooperative and collaborative relationships with other GitLab resources and external channel partners. To that end, the Participant is required to: Submit all quotes for approval that meet the conditions as highlighted in our approval processes. This includes discounts, contract language, and any non-standard terms proposed to a client/prospect. Comply with Customer and Company nondisclosure agreements. Utilize his or her best efforts to develop long term mutually beneficial relationships with partners and customers that reflect the Company's values. Be respectful of competitors and not disparage their company or products. Disclosure of competitor, third party, and business partner strategies must be fair and factual, based only on public information. Apply the requisite diligence, effort, and knowledge in representing the Company. Strive to make the greatest contribution possible to the sales effort and to act in the Company's best interests. When appropriate, invite and encourage other GitLab resources into assigned accounts to maximize an opportunity. When possible, anticipate and inform management of possible commission split situations. All commission splits must be approved by management in writing. Participants should not compete against other GitLab’s Participants for sales opportunities for account control or in an effort to increase commissions at the expense of another Participant. Any potential or perceived conflicts between Participants shall be immediately referred to the Participants’ supervisor(s) for prompt and fair resolution.
Participants are assigned to specific areas of responsibility, which may be changed at any time in GitLab’s sole discretion. Areas of responsibility may be established based on industry specific customers or prospects, selected market segments, specific geographical areas, or any combination of the above criteria or any additional criteria established in GitLab’s sole discretion. Sales Targets (as defined herein) for each Participant are designed to support established business plan objectives and/or are a function of Participant’s prior target and goal attainment, expected future target and goal attainment, and the Company’s growth and strategic requirements.
Commissions = A – B – C For the purposes of this formula: “A” means the amount payable in respect of Realized Revenue, calculated in accordance with the terms and Commission Rates set forth in the applicable Participant Schedule; “B” means the amount of any Pre-Eared Commission Payout(s) paid on returned Realized Revenue (as determined by GitLab) or third party commissions such as third party software vendors or resellers (as applicable and set forth in the Participant Schedule); and “C” means the amount of any Advances Against Compensation. (c) Unless otherwise state in the Participant Schedule, Pre-Earned Commission Payout(s) on Realized Revenue paid by the Customer, and advanced Commission payments based on revenue recognized and invoiced pursuant to Section 5(a) above, will be calculated on a monthly basis. (d) Unless otherwise stated within the Participant Schedule, eligible Pre-Earned Commission Payout(s) will be paid within forty-five (45) days of the end of the applicable month. Specific payment date(s) will be stated on Participant's Participant Schedule.
GitLab policy is to provide Pre-Earned Commission Payout(s) upon the full and complete invoice to the Customer, pursuant to the applicbale Sales Agreement. This policy aligns the interestes of the company and the Participant to collement payment(s) as quickly as possible. Industry average cash collection cycles are seventy-five (75) days. At GitLab our history and continued goal is to collect cash in less than forty-five (45) days. By keeping our accounts receivable balance to a minimum we can raise less money which means less dilution (note that the amount of capital saved is equal to one month's TCV as reported in our monthly metrics dashboard). By being capital efficient we create increased value to our stockholders and team member option holders. The sales team plays a critical role in the collection process. Through our experience we have found that ninety percent (90%) of invoicing delays are due to factors controllable by the sales team members, including:
Please refer to Sales Order Processing to expedite the collection process.
Pursuant to an executed Participant Schedule, Participants may also from time to time be eligible to receive a discretionary bonus (individually a "Bonus", or referred to collectively as "Bonuses"). Such Bonuses, including rights and obligations of the Participant, will be identified on the Participant Schedule. Target Bonus(s) may include the company bonus structure set forth here (“Director and Above Bonus Plan). As stated within this Compensation Plan, Participant shall only be eligible to participate in such target bonus, including the Director and Above Bonus Plan, in accordance with the description and requirements set forth in the applicable Participant Schedule. The inclusion of a target Bonus percentage on a Participant Schedule is not a guarantee that a Bonus will be paid, or that any Bonus that is paid will meet the target percentage. Although discretionary Bonus payments (if any) are calculated, in part, based on past performance criteria (as described below), Bonus payments are provided by GitLab solely to motivate the Participant during the current calendar year. Bonus payments shall be made at the sole discretion of GitLab, and Bonuses are earned only when paid by GitLab.