Notmyname

Account Executive

HELP! Employer lied about compensation plan

Hey Bravado fam,

I need some advice as I really don’t know what to do in this fucked up situation.

Last year I was offered two AE roles, one in the company I used to work for and the other at another very big and well known tech company.

I had a lot of doubts about this other company as my recruitment process had been a complete shit show, so I asked a lot of questions in order to make a very educated decision about my next career move. I knew the team and manager at my (then) current company very well, and both myselg and the manager knew that I would have hit the ground running and smashed targets. The manager also knew I had gotten this other offer and therefore offered me a salary higher than even the Senior AEs on the team.

The salary at the other company was significantly lower, and I negotiated to a minimal increase but three times the amount of stocks offered. Still not pleased, I asked to speak to a rep on the team who told me he was hitting over 400% of his target. I got a glimmer of hope and asked the recruiter if the commission was uncapped like at my old company, and she said yes.

I did the maths and realised that I’d be able to earn more money at the new company if I too could hit up to 400%. I accepted the role at the new company with high ambitions to hit big and early.

Fast forward to when I’ve left my old company and started at the new one: Guess what, the commission is capped. At 175%. On top of that, I understood today from my manager that due to covid the payout cap is actually 150%. I’m pacing 400% for this quarter and this feels like the biggest slap in the face ever. I let my manager know that this is completely unacceptable, and especially from a company of this size and reputation, and all he could say was ”sorry”.

We have another meeting to discuss this tomorrow as I was too shocked from this news to even continue the conversation. I’m therefore turning to you for advice prior to going into this meeting. My manager clearly won’t fight this battle for me.

What should I do?

💰 Compensation

20

35 comments

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paddy

WR Officer

8

Director of Business Development

That sucks, I'm sorry to hear. If you'd like, I can wish them a slow and painful death? I have a direct line of communication with Satan.

Hotlead

Politicker

3

Producer

actually, my number changed but I can get you the updated number @paddy

YourHuckleberry

Acclaimed Answer

2

Strategic Account Executive

This sucks! I'd go look at your original offer letter and anything you've signed. If it doesn't say uncapped commission in there, it's going to be rough. You may end up in a place where you need to cut your losses by telling them what they need to do to keep you, as a high performing sales rep, in their service. If they don't meet your requirements, I'd walk and call it paying tuition.

I have never talked to an attorney about something like this, but it may be an option if you end up quitting. You might even just have an attorney draft a letter of intent to sue (I think that's what it's called) to see if you can get them to pay out the commission you say you are entitled to, or if they will at least meet you in the middle. It's relatively cheap to have an attorney draft a letter, and you obviously aren't obligated to actually sue or anything if they don't budge.

Notmyname

Contributor

1

Account Executive

It didn’t say anywhere in the contract, otherwise I would have never signed. I will definitely start looking for other opportunities, the only issue is that this is my first AE job so it’s quite hard to find another good opportunity... So frustrating.

SalesRecruiter

Opinionated

0

Recruiting Director

I have never recruited for any tech company that listed their commission structure and whether or not commissions are uncapped. Nothing shady about that in my opinion however, it sucks the recruiter relayed wrong information.

CuriousFox

WR Officer

2

🦊

I am sorry this happened to you.

What does your paperwork say?

Notmyname

Contributor

1

Account Executive

It just says I receive sales incentive payments under the sales compensation plan which applies to my role etc etc... it’s a big company so it looked pretty standardized for all sales roles. Nothing about capped or uncapped commission.

CuriousFox

WR Officer

2

🦊

😬

MatyHoo

Good Citizen

2

Manager of Business Development

I feel just terrible reading this post. Sorry this happened hopefully the chat with your manager helps but from the sounds of it, I wouldn't hold my breath

Slavic

Fire Starter

2

Director - Enterprise Sales

They all lie

Salespreuner

Big Shot

1

Regional Sales Director

Extremely upset reading this post and what has happened with you, hope you get it resolved quicker than later!

AnchorPoint

Politicker

1

Business Coach

Wow. Nothing in writing?? No sales agreement?? HOW? Seriously. Tape your next meeting and get as much of the story on tape saying they screwed up and then visit an attorney asap. It is called fraud.

Incognito

WR Officer

1

Master of Disaster

YES TO ALL OF THIS IN ALL CAPS FOR EMPHASIS

salesandstrategy

Opinionated

1

Senior Account Executive

See what you have in writing. If you have written guarantees you have legal standing, otherwise may be SOL.

If you are pacing 400% quota, there is significant leverage when looking for a new employer which sure seems like the right move given the context provided. Good luck!

SlinginSoftware

Politicker

0

Account Executive

This really sucks, but even if uncapped commission was stated in the contract there almost always is a disclaimer to every company plan I’ve ever had that says “plan is subject to change blah blah blah”.

Crappy companies include language like this so when a rep makes too much, they’re not obligated to pay them.

At my last company, ditching COVID they stopped paying out commission and didn’t tell any of the reps it was happening until the day they were supposed to be paid.

VineMic

Executive

0

Account Executive

@Notmyname First off, sorry to hear you're dealing with another lying recruiter, it's a damn big pissoff (snake oil isn't just sold by sleazy salesmen...)

Second, look at it this way: You hit 400% of target. Now could you make more money at another company, probably. But the great thing is you have effectively hit your target and you should build on it for this year. Stick it out, it's your first AE gig and the big thing is you're just making that resume look better.

The job markets going to continue opening up some more and typically in October (all the way till the end of Winter), recruiters are pressed for finding new talent. You having a year of kicking ass as an AE at this new company is a major milestone. The recruiters a dick, but in the end of the day just use this opportunity to make your resume look good and when recruiters ask you this Winter (assuming you decide to chase something more lucrative), why you're leaving, let them know you have a capped commission structure (we can always empathize with it and expressing that you want to get paid more isn't a bad thing in sales recruitment).

Keep in mind that compensation plans change all the time (sleezeball recruiter told me the gig was going to pay 20K more and then a month later we had to docusign a new comp plan which included bonus structures based on monthly targets rather than the full payout). Big thing is this, next opportunity NEEDS to:

- Have a better base salary
- Be a solid solution not some wishy-washy solution that isn't all that
- Have the right amount of accounts to go after

I'm sure you'll find a better gig in the future and I'm late on this post, but all the best moving forward

detectivegibbles

Politicker

0

Sales Director

I totally feel empathy for you. This is unfortunate to read with how much success you are having there.

Like many said about the contract, any reputable company that's honest and transparent would have it line item'd out.

Secondly, they should be having you sign addendums if your commissions ever change.

I understand that not all companies operate this way, but you can totally take this as a learning experience and know what to look for in future endeavors.

Any chance you could leverage your success at this company and make a lateral move to another player in the market?

JC10X

Politicker

0

Senior Sales Manager

Never split the difference by Chris Voss.

youKNOW

Politicker

0

Sales Manager

Definitely f*cking sucks to hear this. I have a few questions...

When looking at the job overall (not withstanding the 175% slap in the face), is 400% sustainable? If not, is it worth it to try and call your old company? Seems like the relationship there might be salvageable.

Is the other rep that said they were hitting over 400% getting capped also? I'm assuming yes, but you never know.

What are you going to do if there's no recourse? Obviously, not having it in writing is probably the hardest thing to get around. Have you talked to the recruiter? Have you spoken to the recruiter's manager or director?

alecabral

Arsonist

0

Director - Digital Sales Transformation

Hi @Notmyname , I think it comes down to one fact: a company such as the one you describe will not change their entire compensation structure to fit what you expect. Now, to be fair it seems that there was some miscommunication when you were recruited.

If you do have a written offer letter, you could have a case that would probably not end up in you getting a better compensation plan but rather, some sort of one-time bonus to compensate for what you won't be able to achieve because of the capped commissions, but that would be extremely lucky. Now...offer letters do not override compensation rules, so even if they offered you something in the letter and then (or at the same time) changed their compensation rules, there's nothing either you or HR can do.

In my experience (I've worked for 2 of the largest IT companies out there), they'll try to keep you "not angry" at least but won't fix this...or just wait until you leave. Your manager will probably not be able to do a lot, and HR is unlikely to pursue a business case to make it right.

I'm sorry, I realize this is not a solution and most likely not what you wanted to read, but I do think it's quite close to how things will likely play out.

If what you're getting is not enough because of the commissions, I'd definitely look for something better.

Good luck!

SaaSKicker1000

Politicker

0

AE II

Sorry bud but it just sounds like you got fucked

hurtscuzimold

Opinionated

0

Dude abiding

Nope. Gotta go. No way you can trust them.

msp_sales

Opinionated

0

Full Cycle Sales

My general rule is if an employer: 1. bounces a check, or 2. changes how you make money because you are winning; immediately find a new gig.

Justatitle

Big Shot

0

Account Executive

Unfortunately there isn’t much of a legal leg to stand on if you don’t have it in writing which really sucks. You can go to HR and if the recruiter expressed the commission is uncapped and you operated under that premise and others have as well there could be something there. You could tell HR you’ll have to look into legal options if this is not corrected as well. Lastly you should consult with a lawyer that specializes in workplace litigation if it has to come to that.

OldSaaSRep

Old School Bravo

0

Sr Enterprise Rep

I'm confused. During your interview process, you spoke with another rep who stated he/she was on pace to be 400% of quota. Why didn't this rep realize the plan is capped? If you and this other rep team up and go to management, demand they rectify the situation, together you may have more leverage. You'll both need to be ready to walk if they say "sorry".

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