Explain the new compensation scheme. Used to be you would earn 10, 15, 20, 30, 40% (or more) bonus depending on position. Word is that is partially going away?
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@ 4ryj it’s company wide for all on the bonus plan; managers have had the “training” and employees will hear about it in a few weeks. It’s does impact the bonus payable in feb ‘22
@4ry managers getting more info over next couple weeks and employee announcement mid October
Anybody has any intel as to when they plan to announce the changes to the bonuses? Does this impact specific LOBs and job titles or is it for the entire company?
No bonus over 8% in Feb per Shart.
We're hearing that a portion of bonuses will be in the form of stock OPTIONS.
These would be priced at the time of award, but would not vest for a certain amount of time - rumor says 4 years.
So, if you get a 20k bonus today, you'd get up to something like 400 shares at $50 apiece for example. But you won't be able to do anything with them for a certain number of years, after which you'd want the stock to be priced much higher than it is today.
If the share price at the time you exercise them is anything less than the example of $50, then you don't get anything. Obviously you'd hope that the price 4 years from now is much higher, like $200 per share.
And if you get a Layoff before then, or leave for whatever reason - you're simply out of luck.
Smoke and mirrors, I think. Thin smoke at that.
Seems like bonuses might swing wildly from year to year.
My heart bleeds for those getting over $50k in bonus. Good grief.
@fwm there’s not a max 50k cash bonus. The higher your variable pay, larger % is stock. So $50k-100k variable pay is 20% stock 80% cash. And so on.
So those of us who are 100% remote and OK for now will almost certainly never fully vest in shares before we're canned? Got it.
I guess now it is more important to kiss you manager’s ar-e and be her best friend if you want a good bonus. Work ethic and performance probably will matter less.
As far as base comp is concerned, dont expect an employer to voluntarily raise your salary. Do your research and advocate for yourself and ask for a specific increase amount. If your manager says no, you know where you stand and it is up to you to find another job making more. Employees have more power than they think. Employees are just afraid to make a change. More often than not, the new job is better than the one left behind, especially if leaving wells fargo these days…
Stock will be vested over 4 years; yet another way for the bank to save money since many will voluntarily leave before 4 years anyhow.
For over $50k that gets paid in RSR, will they be on a vesting schedule like LTI was? So if I normally get a $80k cash bonus and $50k in LTI , now I get $50k max cash and 80k RSR, do I get those 80k RSR immediately or do I have to wait to get 1/4 2023, 1/4 2024, etc? Seems like this could be another ploy to drive down costs if on vesting schedule and you forfeit the RSR Stonks if you leave the company
If true, is this how other big banks approach compensation?
Also does alignment to peers mean person A gets less as a top performer because person B makes less comp overall?
the communication from HR today also talks about aligning to peers. what I want to know is if that alignment will be based on percentage or dollar because of dollar than all of is in in lower area differentials will get screwed over again.
@yvg no kidding. bonuses are always discretionary and my feeling is they're making this change to save money not give out more. we shall see in Feb!
Re “ no one should receive less comp than last year” - that I’ll believe when I see it.
OP, I'm the person that posted about this a couple of weeks ago. I won't say "Told you so" but..
Supposedly for this first year no one should receive less comp than last year but the big "If" is of course funding. Who knows if Charlie is going to slash funding across the board with this little trick.. Then managers can just say "well bonus funding was only at 50%, so what could I do"
@xld
base comp will NOT be increasing. there's not discussion on that whatsoever.
yes, there will no longer be target % for any job. Who knows what that will mean in reality. My guess is managers will have a little more sway in giving out the $$ within the team they manage but it can't be radically off without valid justification as it will all go through "calibration". Managers will still see a $ range for each EE based on what they have received in both cash/stock the last 2 years.
@wys In most cases, bonuses are "discretionary". So they can change whatever they want that to be. I agree with you though. Any real company would announce it for the coming year.
Doesn’t it seem like these changes should have been pre announced for next year vs. imposed on the current year when expectations had been set long ago?
@qsi - yep at my last bank I had no idea if my peers made comparable money or twice what I made.
I'm bonus eligible and a manager and I haven't seen any info on this subject from an official source. It's amazing how poor this company is at communication sometimes.
@xld+1cXqiylo LOL about base comp increasing. Literally zero chance.
Your variable comp this year will be based on your variable comp last year and your performance. HR has set % cash or stock depending on total amount.
Someone called this a few weeks ago and it’s happening. No word if base comp will be increasing.
In the current context of everything else that's happening and the hot water that the company is ever so persistently in, it seems as though any news is bad news. Therefore, I don't imagine there being many pluses to this new bonus structure, if at all.
Fortunately, I'm out in a couple weeks.
Managers have learned more already. One of mine is screaming about it right now.
It’s true but very little detail yet. Managers will learn more next week.
It's gone. Bonus distribution will be up to direct managers, who will be allocated a "funding pool" that is unknown in size. If your bonus is $50K or over, a fixed mix of cash and RSRs will be required.
This is SOP for the other Big Banks: take away comp transparency and use that fog as a way to cut costs and pay people less for doing the same job.
Yes, just another way to make those who remain miserable so we leave too. Chuckie is a sad, pathetic schmuck!