bigfella profile picture
bigfella profile picture

bigfella

AE (Account Executive)

Tycoon
Big Shot
Executive
+5

Company Keeps Changing Commission Payouts?

Part of a scale-up. Company keeps changing payout metrics every few months. Haven't been asked to re-sign anything. Only signed 1 commission letter, and 1 quota letter at the beginning of the year. Is this legal?
๐Ÿพ Commission
๐Ÿ˜œ contracts
๐Ÿ˜ณ Ethics
12

16 comments

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oldcloser
Arsonist
3
๐Ÿ’€
You got a real HR dept? Or is this coming from sales management without HR involvement?
SaaSguy
Tycoon
3
Account Executive
Leave, if you aren't signing off on changes, if you close a big deal they will take it. Pretty much guaranteed.
CuriousFox
WR Officer
0
๐ŸฆŠ
Yeah I agree with my boi here. I hope you are looking elsewhere.
Diablo
Politicker
2
Sr. AE
Really? Everytime we have any changes in the compensation including commission, we are told about it followed by meeting the HR/Revops together and the signing a docusign. I am not sure if your process is legal but thatโ€™s what we follow.

Ques - did you ask about the document upfront?
Justatitle
Big Shot
2
Account Executive
The legality of commission incentives and agreements is very hazy and you almost need a law degree to decipher it. bunch of bs if you ask me.
poweredbycaffeine
WR Lieutenant
2
โ˜•๏ธ
No. Itโ€™s not legal. Push for an updated comp letter or hold them to the original agreement.
Pachacuti
Politicker
2
They call me Daddy, Sales Daddy
@bigfella So they keep changing "what", "how much", or "when"? Not sure what you mean here.
bigfella
Tycoon
1
AE (Account Executive)
Metrics we a graded on which determine payout i.e. payback, discount %, actuals vs. portfolio averages
Pachacuti
Politicker
1
They call me Daddy, Sales Daddy
so they are running the numbers of individual deals and changing the comp plan so they minimize the payout to the sales guy?
CPTAmerica
Opinionated
1
President/CRO
The annoying answer is "it depends."

It's likely that your original comp plan has some verbiage in it stating that the plan can be changed at any time at the company's sole discretion and without advanced notice. However, you may have a case if they have yet to provide written confirmation of the changes. I'd reach out to an HR attorney and get their take on it.
Sunbunny31
Arsonist
2
Sr Sales Executive ๐Ÿฐ
^^ This right here. There are quite a few clauses embedded to enable a company to have a lot of power with how they handle commissions, quota, and payouts. My experience has been that major changes are accompanied by a new comp plan to sign, but sounds like your experience is different, bigfella.
pirate
Big Shot
1
Account Executive
I haven't accepted quota this year and they don't send me anything either. Don't know what that means but I guess companies can do what they please.

I'm sure they'll make it legal.

But have a look and read through the documents and ask colleagues
Maximas
Tycoon
1
Senior Sales Executive
That's why they certainly seek it to be legal by having your sweet signature:)
So,better check your contract to see if changing the commish payouts is allowed and stated or not,if yes then there's nothing much to do tbh,if not and you weren't still satisfied with their update try negotiating a better commission structure and if you feel that you words felt on deaf ears, you're the one to decide whether to take it or leave it in that case!
0
VP Enterprise Sales
Most companies have the right to change quota or compensation plans at will.

You definitely should get plans to writing to sign from your company, both quotas and comp plans.

Some companies are now doing quarterly comp plans.
lilhunter
Good Citizen
0
independent sales consultant
It depends on your contract, country, and State. You gotta read the fine print and then ask chatgpt
Hotlead
Politicker
0
Producer
Have the same thing going on, with no HR department, shits a nightmare

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