Commission Compensation Disclosure

Can Commission-Based Compensation Be Ethical and Legal? Absolutely—With Transparency!

Fractional C-level executives can ethically use commission-based compensation to make high-quality technology leadership accessible to clients who might not otherwise afford it, provided all commissions are fully disclosed and no regulatory restrictions apply. By transparently including potential commissions in engagement agreements and providing specific details before vendor agreements are signed, executives ensure clients make informed decisions without conflicts of interest. This approach aligns with client interests, fosters trust, and complies with laws in jurisdictions without anti-kickback, fiduciary duty, or consumer protection restrictions, enabling more organizations to benefit from expert guidance.

 

Using Commissions to Make Services Affordable and Competitive

By leveraging commission-based compensation, fractional C-level executives and other professionals can significantly reduce client fees, making strategic technology leadership affordable for startups, small businesses, and mid-sized firms that might otherwise lack access to such expertise. Through transparent disclosure of potential commissions and by negotiating vendor discounts, executives pass savings directly to clients while delivering top-tier guidance. This cost-effective model not only enhances market competitiveness but also positions executives and firms as value-driven partners, provided no regulatory restrictions apply in the relevant jurisdiction.

 

CoreTech's Commitment to Supporting All Clients

Even if commission-based arrangements are not feasible due to regulatory or client preferences, we (CoreTech Brokers) remain dedicated to supporting you and your clients as your preferred technology services source. You still have access to our tools, resources, and expertise so that your can continue to succeed and support your clients.