Answers to questions. 1 - This isn't a PIP, it's a precursor to save you from a PIP. You're not at PIP levels of bad, this is instead of that. 2 - Yes, your managers have probably been discussing letting you go, as a result of your performance. 3 - This is a precursor to a PIP. At the end of the process, a decision will be made, did you fix things to the satisfaction of your boss. If so, then you move on and be happy, if not then you will either go into PIP or be offered to leave with a severance. If you take the severance you leave with money in hand, if you go PIP then you could be asked to leave without a severance. Chances are, if you didn't fix it in DC, then you probably won't in PIP. 4 - It does affect renumeration since being on DC will exclude you from comp increases for at least one cycle. 5 - Yes, this makes you vulnerable in future LR's since people will naturally look to those who've had performance issues first.
Listen carefully to the DC, read the letter, be honest with yourself. I don't believe, for example, that you don't know why this happened and had it explained to you. You have to have it explained to you. I've seen people go into DC and turn it completely around. Question is, do you want to? I would say, in this market yes, you do.