Did any other managers get the invite for the June 5 SE pay cut meeting?
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A GR10 in sales is 175-215k without making plan.
a GR10 in CX makes $138k. you guys in sales are being ripped off.
TTC is Total Target Compensation and KSO is Key Sales Objectives, if I remember correctly.
I'm in Eng BU. What does KSO and TTC stand for?
@commision skeptic
That’s great except your math for your New Plan scenario is off. It should be:
[97,000] + 27,200 = 124,200 under the new plan
Vs. 125,350 under the old plan at 85% attainment
So it’s always a slight loss when you are under your target attainment on the new plan. That’s now a higher leveraged plan works.
What was the results from today’s call?
KSO’s go away.
3% drop in base.
They CLAIM to be holding TTC where it is, thus increasing the incentive (variable) component.
Examples they gave seem like it potentially amounts to a slight bump in the bottom line. BUT - without knowing how the actual GOALSHEETS are structured, it’s unclear if this will be as cut and dry as they claim.
Example:
Current plan:
SE BASE: $100000
SE Target Incentive: $29,000 (KSO $5,800 + Comm $23,000)
TTC: $129,000
New Plan:
SE BASE: $97,000
New SE Target Incentive: (OLD TTC - NEW BASE): $32,000
New TTC: $97,000 + 32,000 = $129,000
This can potentially help bump up your bottom line, even if you don’t make your plan. Let’s say you finish at 85% of plan (and you achieve all KSOs under the old system). The old vs new scenarios look like this:
85% attainment (old plan)
Base: 100,000
KSO: 5,800
Comm: 85% * 23,000 = 19,550
100,000+5,800+19,550 = $125,350
85% attainment (new plan)
Base: 97,000
Comm: 85% * 32,000 = $27,200
100,000+27,200 = $127,200
So, their spin is, this will net out to a slight raise for SEs. But without seeing actual plan elements and goalsheets (which are not reviewed as part of this) it is unclear if it really works out this way.
They also claim to be adding a 2:1 accelerator component for overachievement, which they claim is another positive for SEs.
... **were !!
What was the results from today’s call?
Attrition is the point.
I thought so to until they went through the “How did we get here?” Section. It appears that this compensation team, which lives in its own bubble, just dreams up new compensation scenarios, then feeds them into the ELT for review and buy-in.
Approximately How many SEs are at Cisco now? The word is that this cut will affect 5000 SEs.
Attrition is the point.
Yes. Going to be big attrition problems and we're already short with open recs we can't fill.
The invites came on May 26th
Yes. If you didn’t just search for FY20 Comp planning on CEC.