Thread regarding CDK Global Inc. layoffs

Not sure if rumor or true but heard that director and above got 100% or more bonus. S---s!!!

To answer a previous question about it, no, Drive Flex is not new or innovative. In order to get a “version” out to customers quickly we are just putting a new web interface in front of the same old ancient, creaky, outdated DMS. That’s thanks to a combination of management wanting to build something quickly to create a buzz and diehard advocates for 1970s technology protecting their turf in my opinion.

Steve A would have never let this happen even in the darkest days during the last recession. Any mo--n still working there needs to see a Doctor. With unemployment for decent workers at -5% if yo cant get a job in 4 weeks then you should look in the mirror.

In 2006, Brian made 700k as a base salary. This year, he made 900k as a base salary. Doing the math, that looks like about a 28% raise. Guess it pays well to be at the top.

The layoff boomerang effect. It's what you get when your company lays off 650 people right before a putrid merit/bonus, and in a hot economy. If you treat people like garbage, they will take their ball and go home.

No need to take pay cut, just try contacting 1 or 2 recruiters in this hot market, you will get raise and better employment.

I figured the bonus was going to s---. And it does. With the tiny raise and the reduced bonus I've basically taken a pay cut. Except that I'm interviewing for a new job anyway so ill come out ahead while cdk suffers for it. It will be fun to see them scramble when I give my notice.

C Cutting

D Deep

K Kills

G Gains

L Loyalty

O Operarional Effectiveness

B Brain power

A And

L Limits Sustainabilty

Keep up the good work little Brian!!! AKA big daddy Mac

Get out of this sinking ship while you still can. I know I did and my happiness has gone up 10 fold. Advise you all do the same before you get hit with the next layoff phase.

Employees who keep working hard for this company are s---ers. Instead, work on your resume.

I am from india and i have worked like crazy got 4 rating and got no proper raise.. Infact he supports the statement saying "You know the market and you know how company is doing " my answer was "Market is awesome and company is doing wrong" .. Planning to move out for sure and this is going to hurt on clients part as i do

I've seen a lot of lying about project status in my time here. Where is the point where it becomes shareholder deception? Basically I'm wondering if it's ever actually illegal.

Brian P. MacDonald

Executive Compensation

As President and Chief Executive Officer at CDK GLOBAL INC, Brian P. MacDonald made $15,812,583 in total compensation. Of this total $900,000 was received as a salary, $1,534,500 was received as a bonus, $2,999,982 was received in stock options, $10,260,183 was awarded as stock and $117,918 came from other types of compensation. This information is according to proxy statements filed for the 2017 fiscal year. This is where everyone's merit increase and bonuses went.

https://www1.salary.com/Brian-P-MacDonald-Salary-Bonus-Stock-Options-for-CDK-GLOBAL-INC.html

The thing is, the company was profitable enough. We hit our profit targets. We missed the revenue target. So even though I qualified for 100% of what I can control and , profit targets were met, I get 68% of my bonus. I did get a 3% raise, which by CDK standards is HUGE. I’ve had all 4s in the past and got 2.5%.

I just wish they would be honest with us, and not play semantic games. I am ramping up my search. After 9 years I don’t have a lot of hope for the future at CDK

Weird. I got 3's all around, got my 3 percent raise and a bonus larger than what I thought it was going to be as a result of the layoffs.

I keep waiting for the next shoe to fall. In the meantime, I've hired a resume writer and am looking for a new place to land. It's simply not worth it. I hear others in the office saying that we just need to ride it out for one more year because Brian will be gone by then. I just don't think we will have any clients left over by then.

I work on drive flex - they are lying about it’s current state. Just like others have mentioned: if you speak up, they let you go. Which is why Dwayne was let go. Rajiv lied about how far along it is, Dwayne wouldn’t back up his lie.

Smallest bonus I have ever received, less than half what I expected.

S

@2ite - thank you - that was an epic post

This hurts

took the executive team and their spouses to Europe for "meetings

So the good news is Brian MacDonald made his target and was rewarded handsomely for that! The target unfortunately for the rest of the CDK employees was him destroying a company in favor of his short term goals of being paid. As I look back at all that was lost during this time it is unmeasurable and ultimately I feel for CDK's customers as much as the employees that were swept up in Brian's combine of greed.

Please don't stop at laying this though solely on Brian's door he carefully orchestrated a core group of his sycophants to install fear at the top of CDK that allowed this to happen. I don't think anyone can forget that lived through this disaster the implied threat of Dan Flynn showing up on a call or meeting.

Meanwhile smart and inquisitive senior leaders were let go or magically "retired." If you look at that history and those departed leaders all of them have one thing in common and it was questioning the direction of the company, Brian's Leadership decisions and their fallout. Arguably I shouldn't have to say this but the results were degraded ability to serve customers, lost business, lost sales, lost morale, broken company....

Meanwhile now we hear about the latest joy on business performance and bonuses. Well one group at CDK is getting their payouts and it is apparently a select few. So while Brian, Dan, and Cronies flip the bird at CDK's customers and Employees on their way out celebrating in Switzerland with their families. I guess just embrace the s--- and look at that lemon.....

If you are dumb enough to remain an employee at CDK after this I feel sorry for you.

Isn't Drive Flex- the supposed new and innovative DMS still in beta and nowhere near ready to go to market? If you listen to last 2 earnings call Mr. Narcissist (our POS CEO) never mentions that fact. He alludes that it'll be ready for market very soon.

Any engineers working on this that can elaborate?

Test

Me thinks SEC violations.

CDK is a piece of sh--, and I've been there over 10 years.

More context? Sure...how about this?

1. The layoffs in early July (600+ people) were too deep. Those layoffs have crippled our ability to install our sold business. We are scheduling installs that we know we don’t have resources for. We have been told to schedule installs even if we don’t have the manpower. Why? To give the dealers and sales the impression it’s business as usual. ELT knows we don’t have the resources but have demanded we schedule the installs.

2. We have products that have been sold that we can’t schedule installs for until May-June 2019.

3. We have dealers that are buying dealerships that need to go-live in September. We don’t have resources until November. When we tell the sales teams we can’t install them the dealers will be forced to keep the current (non-CDK) DMS.

4. Macdonald has a current promo running for non-CDK dealers. The catch is they MUST be installed by September 12th. Why rush to have them installed by September 12th? Q1 valuation???

5. We are calling products installed, and claiming the revenue, before they are actually installed. We’ve NEVER done this in the 20+ years I’ve been here. Why are we claiming revenue before it’s installed all of a sudden?

6. CDK sold $500M in Notes back in June. CDK is buying eLeads and overpaying for it! Probably paying $300+M for a company worth half that. We are rushing to close the eLeads deal in August, early September. Why? Macdonald wants to recognize the additional $12-$15M in monthly revenue from the eLeads acquisition before the end of Q1.

7. Annual bonuses for non-sales positions were announced today. They were cut by more than half. Some eliminated completely.

8. Sales rep monthly bonuses were replaced with a quarterly bonus that won’t have to be paid until AFTER Q1.

9. Sales rep quotas were increased by 25% and their commissions were cut. Total cuts equal to about a 30% cut.

10. Sales Directors pay cut by $40-$50k

11. ELT members got pay raises.

12. Sales teams aren’t allowed to do any DMS renewals with any price reductions. All the renewals have to be the same revenue or greater. First time EVER this has been the case.

13. Macdonald took the entire ELT and spouses to Switzerland for the annual sales Summit trip. The entire ELT! Never before. Why this year? A farewell gathering? Why did they all go a few days early???

So, personnel cuts to the point where we can’t install or support our dealers or products, pay cuts for everyone except ELT, overpaying for eLeads and rushing to finalize the deal in Q1, rushing bad installs in Q1, claiming uninstalled revenue for Q1, eliminating bonuses in Q1, taking your “Yes Men” on a final trip to Europe in Q1...you tell me what’s about to happen!

I’ll be glad when it’s over. Some of us that have pride in our work and the service we provide our dealers would like to get back to work. Macdonald and his crew can’t leave fast enough in my opinion.

Shame on the board for allowing this to happen right before their eyes :(

Macdonald is staying for month or more so he can fly around in his new corp jet that he has insisted cdk include in the in play a quisition.. cost cutting for everyone except him

Maybe the reason the ELT had a European summit is that’s where they found somebody to buy the company and they are hashing out details of the next transition.

I'd agree that is LOOKS like they are preparing to sell, but you speak about it as if you know for sure... any more context you can provide?

Again...they don't care. The company is sold. Macdonald and his Hertz cronies/rejects are wrapping up the final details before cashing in and setting sail for the next gig. BIG push to get EVERYTHING installed before the middle of September even if it isn't installed correctly so they can claim the install revenue. Sales rep pay cuts, DOS pay cuts, no more monthly bonuses for the sales side, higher quotas, pay cuts across the board...except for ELT. Company is sold. Macdonald is just holding on for 30-60 more days hoping there isn't a mass exodus before he's out. What a terrible leader! oh yeah...shame on the decent guys below him for being cheerleaders when you KNOW whats coming.

Most of the ELT has been absent since the layoff, no communication. nothing. I have seen Rajiv with his head down scurrying around looking like his tail is between his legs looking scared. It is probably a good idea they lay low, with everyone hating them.

When they started damaging our ability to do business and serve our customers, that is when I was convinced they are out to bleed this company dry. They do not care about customers, they do not care about employees. They care about themselves. Stock price has been in the tank since this all happened. Was that part of the plan? Are they trying to reduce the value so they can sell it? Smarter people than me know.

"Pay for performance" indeed.

As a victim of the last round of layoffs, I guess I shouldn't expect anything.

I think it’s even worse than that: it seems to be that they want those remaining to quit, preventing the legal constraints of layoffs. There guys aren’t stupid, it’s a plan being executed.

Their actions speak way louder than words - I get we had to let people go, however - the leader of my division (Rajiv) has been totally absent since the layoffs. If the layoffs were to put the company in a better place then why are the execs hiding? Is vacation, international meetings really the right message to send to those remaining? Someone needs to teach these people about optics... I sure hope it’s intentionally.. the alternative is much more concerning.

I'm in the same boat. I was very disappointed after having my merit discussion. When our leader is a classic text book narcissist this is what happens. He could care less who leaves because at the end of the day he'll leave 16 million richer.

yeah - I got mine today too - same - they just must not care who stays... this can't just be stupidity.