G
G

GNR

Account Executive

Fire Starter
Contributor

THEY CHANGED MY COMP PLAN

In month of August I was able to achieve 450% vs Plan and I was about to be paid around 45k in commission as accelerators kicked in but this morning my commission review came in and turn out my organization has decided not to give me accelerator and pay me the standard fixed commission is it even legal , they told me ramping AE won't receive accelerator anymore  but I was paid last month commission with accelerator ! 

I'm literally getting paid what I got paid for one deal with accelerator for 5 deals I did ! 

it's a USA based organization with operation in Canada and I work in Canada , also my comp section in my contract only talks about my salary not commission 
💰 Compensation
😳 Ethics
🙌 Events
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26 comments

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antiASKHOLE
Tycoon
6
Bravado's Resident Asshole
Bogus, but look at the fine print. There has to be someone you can reach out to about it.
LordOfWar
Tycoon
6
Blow it up
I don't think this is legal, especially if they set a precedent with paying your accelerators last time.

Get in touch with an employment lawyer ASAP and do NOT sign anything.
ChumpChange
Politicker
2
Channel Manager
Reaffirming... DON'T SIGN SHIT!!!
Sunbunny31
Politicker
3
Sr Sales Executive 🐰
Based on your comment below it sounds like you may not have a written Compensation (Comp) plan. Is this true? How were your commission % and attainment communicated to you?

It's best if you have a written, signed comp plan. The details of your quota, attainment, accelerators, would all be there in writing and agreed to. Often, unfortunately, there is a clause in the comp plan about exceptions or "big deal" clauses, which can lead to a company "renegotiating" the comp. (and it's never negotiated in a rep's favor, if they even include the rep and the sales manager in the conversation).

If you do not have a comp plan, do you have anything in writing, like an email, that defines your commission structure and the ramp?
ChunkyButters
Tycoon
3
AE
It's funny how many people post this topic.

"They changed my comp plan", "Will they still pay me comp after I leave", "They are paying different than I expected", "Is this legal", etc. etc.

People need to read their fucking contracts. Most comp plans can be changed without notice. It's in the fine print. They can change it and usually back date it. Read your fucking comp plan and employment contract.

99.9999999% of the time your company is not going to do anything illegal. They are going to use the loopholes and verbiage in your contract to change things. If you feel there is something illegal, call an employment lawyer.

If they're changing things to pay you less and tell you "sucks to suck" then look for a new gig.
Gasty
Notable Contributor
2
War Room Community Manager
Does your contract / offer letter state that comp plans can be changed without prior notice ?
0
Unfortunately there is almost always some verbiage like that. The last place I worked changed the comp plan every year. Most c level people think that someone in sales shouldn’t make more than they do. Put some money away for the inevitable cap on your earnings.
DevSomeBiz
Valued Contributor
2
Senior B2B Sales Guy.
If you're in the US, call your state workforce commission. This is a huge red flag. Comp plans change all the time, and rarely in your favor, but they should honor the plan that something was sold under.
NotCreativeEnough
Big Shot
1
Professional Day Ruiner
sounds illegal when its in writing and signed by both parties what the comp plan is. Changing it for future months/quarters is one thing, but changing it on commission already earned is some BS.

With that said, I'm not a lawyer so what do I actually know.
Kosta_Konfucius
Politicker
1
Sales Rep
I have seen a cap on commish when on a ramp quota, it was like that 2/3 places I have worked.

There should be more details in your comp plan
TennisandSales
Politicker
1
Head Of Sales
sounds shady as shit. normally when a comp plan is changed they make you sign off on it for legal reasons. if you havnt signed anything that another red flag.
Notmyrealname
Politicker
0
AE
It depends on how your comp plan was agreed with you and what's in your contract. I've worked with written comp plan "contracts" which were always honoured but it would've been impossible to achieve 200+%, and also plans that were more aloof where it's written in the contract that it's discretionary.

Either way, not paying a new rep in full for exceeding expectations is a red flag.
GNR
Fire Starter
0
Account Executive
My contract has only mention of my salary and not my comp plan ! Does it make any difference ?!
I work for a US based org with operation in Canada ( I’m based in Canada )
nomdeguerre
Executive
2
Account executive
So, you don’t have written confirmation of the details of your comp plan? This will make your case more challenging I think. Also, most written comp plans has a clause that the company have the right to change any element without any notice. Which essentially means that you have no rights.

This is a super dick move by your employer, but I doubt there is much you can legally do.

I think your best bet is to bring this to the chain and plead your case. If you go the legal route be prepared to lose your job.
CuriousFox
WR Officer
1
🦊
Yeah this isn't sounding so great.
Notmyrealname
Politicker
0
AE
Problem here is legally comp is discretionary. You could try negotiating somewhere in between full pay out and what they're offering, but if you're not willing to leave the company over this you probably won't get what you want.
ThatNewAE
Big Shot
0
Account Executive - Mid enterprise
This sounds illegal and enraging and disgusting, all at once.
If they mentioned during your hiring that they have the liberty to change comp plans randomly, I'd say you should have seen this coming. If the contract mentions so, you can't do much.

If not, find loopholes and bring them into questioning. Like, what's this. Why weren't you aware before hand. And the important thing - You are not on the same page.
jefe
Arsonist
0
🍁
Definitely get a lawyer, do not agree to anything or sign anything.

I get them changing your comp plan for the next month/quarter, but you need to get paid for these deals.
AnchorPoint
Politicker
0
Business Coach
Straight to an attorney.
ChumpChange
Politicker
0
Channel Manager
Sketchy AF. And also a red flag to everyone at the company. Read the comp plan documentation that companies typically get you to sign. If the language isn't in there then be prepared to defend yourself.
WheelofCheese
Opinionated
0
Sales Executive
Unless otherwise stated in your employment contract, comp can be changed at any time and without notice— unfortunately. Not a great move for an employer looking to retain talent, but it does happen. I’m sorry to hear! The good news is there are other opportunities out there and going forward I would definitely everything you sign line by line.
0
Semi Retired
It is the most demoralizing behavior a company can do to their employees.

Document, Document, Document!!! Do not sign anything that is back dated in regards to your comp plan.

Sprint, Oracle, AT&T, just to name a few were sued and those that kept records of these types of issues were awarded all back commissions and interest. It took 20 years so it was quite the sum.

Also, Canada does not play when it comes to their citizens but with American Companies pulling out of Canada, I would just keep killing quota.
0
Director of Sales
Refer to your compensation document. Check with the labor board as changes in pay structure need to be communicated in advance. I would also ask why you were not notified of the change prior to your meeting.
CritMaster777
0
BDR
This is sucky but normal. You hear about this sort of sticker shock all the time from sales management.

They didn't think you'd pop off like that. Nice work!

Sounds like you're working at a startup and they're figuring out how to compensate their reps while also making a profit.

It'd be worth asking your leadership what you should be taking away from this. Questions like "How would you like me to think about this as I try to excel in the future?" Might help them see how they're sucking the life out of you.
0
VP of Sales and Business Development
You mentioned that the present comp section in your contract only talks about salary and not commissions. I have a feeling you need an attorney to see if the fact they paid you in the past the commissions differently will make a difference if they decide to change everything. Somehow, I have the gut feeling that they will not pay you what you are owed, but I may be wrong since they did not give you reasonable notice of any changes in their compensation program. Only what is written and the laws in Canada matter. Good luck and I hope we hear good news in the future. You presented an interesting and sad scenario.
0
AE / AM
There should be an addendum to your comp plan, it is supposed to be clearly outlined and defined. That said, if it contains the line, subject to change or management approval, you are out of luck. I worked for a company that changed the comp plan 9 times in 11 months. You never knew what you were going to make. Good luck.

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