I'm a little confused about how your pay plan works. First you say "a portion of the net before overhead," then "he is paid on net after his controllable expenses"
Your faith in the dealers honesty is amazing. I had a plan like this years ago and found out that the dealer was jacking me in a big way. I'm all in favor of incentives and bonuses but only in addition to a solid salary base.
My pay plan incentives are based on a percentage of the fixed ops net. This ensures a good relationship with the shop and a lot less bickering about where expenses are assigned. It encourages reducing and avoiding expenses where possible, adding to the net.
[This message has been edited by Colin W (edited 02-07-2008).]