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Is it normal for companies to change their compensation package after starting?

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Re: Is it normal for companies to change their compensation package after starting?

#11

Post by comp_throw7 »

thatkindagal wrote: post #9
comp_throw7 wrote: post #7

Contrary to other replies, this is not remotely normal. Make sure you aren't misunderstanding the terms of your offer: some companies will say $x dollars worth of stock, with stock price determined by e.g. a 90-day running average. If there's a clause like that, and the stock went up so much since you joined (or signed the offer letter, depending on the terms) that the average price over the last 90 (or whatever) day…

The terms were very clear..30 day avg for $x worth of stock so it was very easy to calculate what it shuld have been.. they changed the avg in their favor afterwards bc we joined on covid dip..

Make sure you know if it's a 30-day average starting from date of signing, join date, or date of board approval (haven't seen the last one before, but who knows). If it doesn't match any of those, then yeah, it's bad.

Re: Is it normal for companies to change their compensation package after starting?

#12

Post by tjpnz »

thatkindagal wrote: post #10
tjpnz wrote: post #6

Is your RSU being swapped for cash?

no..essentially it magically disappeared in the name of "fairness"..I wasnt the only one effected..

This is something I would kick up a fuss over, even better if you weren't the only one affected. While there probably isn't anything you can do legally you may be able to get the company to see things from your perspective. This isn't wishful thinking either, I've been in a situation where we were able to negotiate for additional compensation after loss of RSU.

Re: Is it normal for companies to change their compensation package after starting?

#13

Post by GianFabien »

YES. In 7 years with a company that got acquired by another and then eventually liquidated, my T&Cs changed about 5 times. I didn't have shares, but had a large profit share component which was fiddled with constantly. I think you should read Heidi Roizen's blog https://www.heidiroizen.com for some more examples.

Perhaps you should look at the big picture. Are your earnings above average? Was the stock grant the only reason you took the job? If you start legal action or make a lot of noise, your career will probably hit some roadblocks at that company and possibly others if the news gets out in the open.

Re: Is it normal for companies to change their compensation package after starting?

#14

Post by thatkindagal »

tjpnz wrote: post #12
thatkindagal wrote: post #10

Earlier quoted context omitted.

no..essentially it magically disappeared in the name of "fairness"..I wasnt the only one effected..

This is something I would kick up a fuss over, even better if you weren't the only one affected. While there probably isn't anything you can do legally you may be able to get the company to see things from your perspective. This isn't wishful thinking either, I've been in a situation where we were able to negotiate for additional compensation after loss of RSU.

I try to talk about it with management..I was basically brushed off..I'm scared of being layed off bc the company has recently done a few rounds of layoffs..

Re: Is it normal for companies to change their compensation package after starting?

#15

Post by fsociety »

thatkindagal wrote: post #14
tjpnz wrote: post #12

Earlier quoted context omitted.

This is something I would kick up a fuss over, even better if you weren't the only one affected. While there probably isn't anything you can do legally you may be able to get the company to see things from your perspective. This isn't wishful thinking either, I've been in a situation where we were able to negotiate for additional compensation after loss of RSU.

I try to talk about it with management..I was basically brushed off..I'm scared of being layed off bc the company has recently done a few rounds of layoffs..

Unless you really value the company, people, execs, and mission there I’d keep your head down and start interviewing elsewhere.

If you do really like it, I think there is a risk when bringing it up but you should be able to find a compromise with them somehow (more $$$ within X amount of time if the company is in a better spot).

Re: Is it normal for companies to change their compensation package after starting?

#16

Post by fuzzfactor »

>Is it normal for companies to change their compensation package after starting?

Yes, if you are a productive worker for a generous employer they will handsomely reward you for your particular contributions, as well as give across-the-board increases in pay and perks, and it will exceed everyone's expectations.

Re: Is it normal for companies to change their compensation package after starting?

#18

Post by batmaniam »

This is ridiculous. You joined at a lucky time, that should not be counted against you. I mean, that's what all stock is, right? A gamble, and you won the pot on your first try. If company's stock went down, do you think they would have readjusted your base salary to match? Don't think so.

This is just another one of those tricks that companies do to try to boost your base compensation, but without putting the actual money in. Cash will always be king, always prefer it against RSUs.

Re: Is it normal for companies to change their compensation package after starting?

#19

Post by shakkhar »

No this is not normal. The important thing you need to decide is whether you want to drag this through the legal process or simply cut your losses and move on. To get a lawyer to pursue this seriously may cost thousands. Either way, I think you should quit at your earliest convenience. Bad employers don't turn good if you stick with them long enough.
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