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Round Rock Today
By the People, for the People
Dell Overhauls Sales Compensation to Prioritize AI Infrastructure
The tech giant is shifting from commissions to target-based incentives to align its sales force with AI growth opportunities.
Published on Feb. 13, 2026
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Dell Technologies is overhauling its sales compensation structure, moving away from a traditional commission-based model to a system built around 'target incentive' payments. Under the new framework, salespeople will no longer earn commissions tied directly to individual deal revenue. Instead, they will receive incentive payouts based on whether they hit predetermined performance targets, with a focus on selling AI-optimized servers, networking equipment, and associated infrastructure.
Why it matters
The timing of Dell's compensation restructuring reflects the company's strategic focus on capitalizing on the growing demand for AI infrastructure, which has become a primary growth engine for the business. By reorienting sales incentives around AI solutions, Dell is signaling that its legacy PC and server hardware segments are no longer sufficient, and the company needs to ensure its sales force is aligned with its AI-centric priorities.
The details
Dell is restructuring its sales organization into 'solution' areas, with AI-related products and services occupying a central position. Sales representatives will be assigned to specific solution categories, and their target incentives will be calibrated to Dell's strategic priorities. The changes are generating considerable anxiety among the sales staff, who fear the new system could significantly reduce total compensation for experienced salespeople who thrived under the commission model.
- Dell's fiscal year 2026 begins in February 2026, when the new compensation structure will take effect.
The players
Dell Technologies
A technology company based in Round Rock, Texas, that is overhauling its sales compensation structure to prioritize AI infrastructure.
Michael Dell
The CEO of Dell Technologies, who has guided the company through multiple reinventions and is now leading the charge to reorient the sales force around AI opportunities.
What’s next
The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.
The takeaway
Dell's sweeping compensation overhaul signals the company's aggressive bet on the AI infrastructure market, but the execution risk is substantial as the tech giant seeks to align its vast sales force with this strategic priority.
