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January 14, 1997updated 05 Sep 2016 1:01pm

CHANGE IN DEC COMMISSION PLAN MAY HURT NUMBERS

By CBR Staff Writer

While analysts are looking for DEC to report earnings of around $0.11 when its second quarter figures are published this Thursday 16th, sources say recent changes to the company’s compensation plan may knock holes in the balance sheet. DEC now pays its sales staff a 40% commission and a 60% basic salary, down from 30% and 70% respectively, giving people a reason to leave, we’re lead to understand. It’s a hangover from the way DEC used to pay its employees when founder Ken Olsen was in charge; Olsen did not believe in commission and paid all staff a basic salary. We’re told DEC’s semiconductor and network integration units are both hiring. DEC blamed a first quarter loss of $74.8m on restructuring. New accounting practices have allowed to company publication of its quarterly results up by about a week.

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