Sales EAE Quota is the new customer contract value that a salesperson is expected to bring in total during a given period. This metric is used to estimate a salesperson’s variable compensation. Depending on their performance against the quota, a salesperson’s variable compensation is determined. Typically, performing above quota means higher variable compensation whereas performing below quota results in lower variable compensation.
Suppose John Smith has a quarterly ARR quota of $250K. This means that he is expected to bring in $250K of new ARR from customers every quarter. Based on whether he gets ARR above or below this quota, his variable compensation will be determined.