My company is looking to adjust TC formula in a weird way
My company is looking to adjust everyone's total comp by doing the following:
Decrease your bonus by X amount and increase your base by that same amount.
- Pre-Adjustment
- Base: $125K
- Bonus: $40K
- TC: $165K
- Post-Adjustment
- Base: $155K
- Bonus: $10K
- TC: $165K
Thoughts on this? My issue with this is that our TC will remain the same without any bump and there's less incentive to outperform if your bonus will be a very small portion of your compensation (~10% of your base).
In addition, other firms have been increasing base salaries for their FO employees so the gap between our comp and the street will continue to widen as time passes.
Should I look elsewhere? The company indicated that they are also looking to do a market rate adjustment but who knows how long that's going to take?
More guaranteed comp and not being screwed by a bad bonus is a good thing. As long as TC continues to increase at same/faster pace than before that's easily a positive outcome?
But the main issue is that other competitors are increasing their base pay for juniors whereas my firm is just doing this (for now).
Your total comp wont scale as fast with your salary now. The thing about a 100% bonus is that it means every $1 increase in salary is a $2 total compensation increase. Because of this, you are FUCKED. Lateral NOW if you want a fair shot at life
Why are you being paid like a top-ranked 1st year analyst?
Honestly, all else being equal, it could be worse,
Money today is worth more than later (concept called Time value of money)
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