TK said base salaries will be adjusted to market. Who decides what "market" is? And if your current salary is above "market", I suppose you can expect a cut.
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Not worried about pay cut. You pay me 20% less, I now do 20% less work. Simple as.
They already announced that they are increasing the 401K match. I doubt they are going to do much with health insurance. After all, the people in charge need it, too. In a couple of weeks, there will be the first open enrollment presentation, so we'll all see what changes are in store.
The pay cuts are not going to be directly to the base salary. Expect:
- - lower or non existent merit increases
- - cuts to benefits and especially health care
- lower bonuses - more aggressive targets will the harder to get bonuses
- moving to unlimited PTO and not paying the existing hours
One of the big measures when thinking about buying a software business is revenue-per-employee. The lower Krause can make the denonimator, the better it looks.
Krause has to do what the PE owners need to make these legacy software company remnants somewhat attractive to potential buyers. A lower-cost (than the average) employee base is an asset when you're trying to sell legacy software companies.
And, there are legal ways to reach this objective, even in Europe.
There are a lot of people at Citrix who got screwed by the internal “cap” on salary increase when they moved into new roles (people moving up from consulting to sales engineer, from demand generation to sales, etc). You had to then get promoted within that role to be up to market (and I knew quite a few that we’re still well under market). There was a frequent inside joke that people would leave Citrix for more $$ and then come back to get paid what they are actually worth on the market. Even still, I know more than a few who took pay cuts to come to Citrix for the culture (which is gone now) and/or who’ve left recently to find out how underpaid they were (compared to market).
Even if they don't reduce base pay now, they can let salaries lag by giving little to no raises, claiming they need to get them down to market over time. With inflation, that will be the equivalent of a cut. Another motivation to leave.
Statements have been made publicly that no one's base pay will be reduced. If you're on VCIP, then that part could / will change.
This is bogus because one's salary is not necessarily what one would make on the open market. People get compensated for their specific value to a company after years of work. If the question is "can we get someone else to do this job for less", the answer is always going to be yes because anyone can be hired and trained.
The more I hear TK speak, the more I am convinced about what an utter as#ho-e he is. He'll be gone after two years. Who knows what he'll leave behind.
Goodluck with that on some continents legally
Hmmm. Why do I get the sneaky suspicion that everyone's current salary will be "found" to be above market?