Craig; this is a complex subject as i'm sure you know. a few random questions:
1. will this person start out managing a sales/biz dev team that is currently in place or as an individual contributor expected to hire sales and biz dev team? - you have 25 employees currently, are any of them in sales or business development?
2. what is a "commissions cliff"?
3. without giving up proprietary info, what is does the 1, 2, 3 and 5 year revenue plan look like? feel free to message me directly. This is important. in simplest terms the job of the CRO is to generate revenue and thereby build value for the company with the expectation of creating both short-term and long-term value for his/her self. Beyond connecting with you and the team and your vision this individual will go straight to the numbers to way their opportunity costs - you hope they do because you want an individual focused on the revenue numbers. They will do some relatively simple math to figure out if they believe they, with the help of the current team and the team they (presumably) will hire, can make a short-term living and hit a long-term home run. That of course is to a significant extent tied to the norms for your industry - SaaS in the retail space. So for example, if the 'norm' in your industry is that a VP of sales makes a $150k base and a total comp at target of $400k, then when you back into your revenue forecasts do the numbers add up?
4. you seem to have quite a bit of experience in sales/biz dev yourself so you know that comp plans not only need to focus on incenting behavior that you want, but also preventing behavior that you don't want.
5. Not sure i would spell out annual base increases in the plan at this stage. i think i would simply address that in annual reviews. The BOD may want input to exec comp too.