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We live in a business culture where corporate gifting is an expectation. When you’re dealing with executives whose annual compensation is high six figures into the seven figure category, a beer couzy or a logo’d plastic pen just won’t make the grade. Generally, the gift’s value should correspond to the value of the potential contract or book of business that is under consideration along with the particular executive’s compensation.
Most companies now target the value of the product or service being purchased. |
Consider a formula of 0.5% of contracts valued under 2 million dollars and 1.0% from 1 to 10 million dollars. Sales over 10 million dollars should be addressed by the corporate board of directors. These are loose guidelines. Only you know how crucial a particular sale is to your organization. A start-up might want to consider upping the ante on an executive gift because it could be a major turning point in the fledgling businesses development.
Once a determination is made on the value of compensation, the type and form of the gift takes center stage. Here you really need to do your homework. Do not offer tickets (with a private jet to your corporate box at the super bowl) to someone who hates sports. We assume that when you’re courting an executive such as CFO or COP for a large contract you should have had enough contact with this person to have assessed some of their interests.
Vacation packages are a great gift. Treat your executive to a luxury cruise, or a spectacular golf outing at a world class golf resort. An individual gift such as a piece of artwork or a new car would not be appropriate. More importantly be aware that many executives are prohibited from receiving any gifts as this would be viewed as a conflict of interest. More and more companies have a policy that once a contract has closed you may make a contribution to the target corporation’s charities.
Do your homework, be careful not to offend, and leverage your executive gifting in a manner that is win win.
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