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Ask HN: Are any of you salaried under pay-for-performance?

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11–14 of 14 posts

Re: Ask HN: Are any of you salaried under pay-for-performance?

#11

You won't get it unless it's up front. Common sense should prevail here, why structure it like this except they don't want to pay you?

I think it's a bit of systemic mistrust rather than any underhanded plan. The owner is worried about what he sees as a high salary and wants to bake in some accountability.

Re: Ask HN: Are any of you salaried under pay-for-performance?

#12
All else being equal, I would say No deal. reduction in base salary is a huge thing. Let me tell you why. Lets say you do take that new job with the salary reduction, best case you get that 20K bonus. Now, if you want to switch jobs, most employers will consider your base salary first and bonus second because bonus is not guaranteed. Your leverage or power to negotiate goes down with a lesser base salary. Worst case, you don't even get the bonus (oh we had a bad year u know) and there u r. 20K reduced base with 0 bonus. Your next potential employer wont care less why u took a reduction. They see reduction, period.

I know i m sounding harsh here but thats the reality of salaries these days. I understand that startups might have a little more flexibility but as a professional with 10 years of work experience, I would never ever suggest to take a salary reduction. You just don't know where you will end up next.

Re: Ask HN: Are any of you salaried under pay-for-performance?

#13
post #2

I've never heard of that and unless you are happy with the worst-case base salary I would renegotiate. Having been a part of many bonus systems, I never plan on the bonus money to actually hit my bank account.

Good advice, thank you. I told the employer that since this is a reduction rather than addition, it's more like a punitive system.

I believe if I were to take this offer, the risk/reward would have to be higher, in addition to knowing about partial bonuses and how pass/fail/partial allocation is figured(discretionary vs calculated). So in this example to take a 20K salary hit, the bonus would have to be at least 40K. If you hit it only ever other year, it evens out.
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