Salary increase in 2010 vs. incentive comp
I was promoted this year and received a substantial hike in base salary. However, this raise was made with the provision that my salary increase will offset "a portion or all of any incentive compensation" I receive in 2010. Apparently this is the norm for promotions to VP and above at my firm this year. Theoretically I suppose the VP-level bonus should be substantially higher, so I should still receive decent comp. But the terms also give the company leeway to pay me a skimpy bonus in 2010, meaning that my raise is actually not a raise but an advance on my next bonus. What are your thoughts on this?
Well good thing about it is that you have a guaranteed payment as opposed to a discretionary bonus. But, in the end like you said, they can just pay you less in aggregate and justify it with a weak year, etc. It doesn't sound like they gave you a choice, but hey at least you have a job and you getting paid more this year. Its all relative.
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