Bonus and pay increases are in! What’s the general consensus?
10 replies (most recent on top)
@130 I think some people have a long history with the company and have leadership protection. They willingly stay and will go down with the ship. For others it’s a bad market and there are few places they can confidently go to.
Challenge is that the majority of other tech companies are paying more, providing more benefits, better commission plans and giving year on year increases.
Whereas Omnissa ELT are delusional, are failing and believe people want to come and work here. Hiring new people costs more than looking after the ones you already have.
Question - why do you think nearly 3500 people are choosing the stay?
@qr fund investors are not carrying the debt. These are leveraged buyouts so companies are carrying them. If they can’t repay, they go bust
Given our ongoing decline in revenue and profitability, pay and bonus is to be expected. Keep in mind that KKR, and its fund investors who carry the debt, own several other software vendors that have poor performance. Be grateful if you get any increase in compensation.
@hy Ok, sure, buyer can use any means to bring the money ($4B) to transact - but how is that debt put on the books of Omnissa, which is the purchased entity? This sounds worse than Dell's 11B loan on VMware's books for the tracking stock enatanglement. This debt and interest expenses should be on KKR's books, not something Omnissa has to pay for.
There was no way KKR would put up $4 billion to fund the deal. I’ve heard they guaranteed the loan with the hope that interest rates would drop and the $4 billion could be refinanced. Unfortunately that hasn’t happened yet thus we find ourselves in our current predicament.
Am curious, why does "Private Equity" need to do a leveraged buyout? Isn't PE supposed to have cash in hand to invest? Who is underwriting this $4B loan? I hope it is not some financing trick to make themselves pay dividends (via interest), while other stakeholders keep waiting for a liquidity event.
The numbers don’t work for the current business model. When you’re paying interest on $4 billion roughly 25% of your income is used to service your debt.
0% for all AEs & SAs
The general consensus is that bonuses are exactly in line with the bonus funding, which was communicated on company wide calls.
If you're inside Omnissa, then you know.
If you're outside of Omnissa, then it's none of your business!