Strange bonus / raise situation

Audrey Kirsch

December 23,2022 at 6:20PM UTC

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Strange bonus / raise situation

I need to hear some thoughts about this. I work for a large national company that was purchased by a larger company which is now part of a huge global company. Slowly all of the various companies are being meshed with same policies, HR, etc. Sounded like a positive thing but here's where it gets weird. My boss just gave me my annual review which is now being called a 'performance conversation.' Prior to this, we all received an email saying that all bonuses and raises were being put off until April so that we could be in line with the parent company's policies. The strange part is that my manager cannot tell any of us on his team if we will end up getting either a bonus or a raise or what the amount might be. He is in the dark regarding his own salary as well. He also said that our performance probably won't have an impact on what we are given. How do you negotiate for something better if you don't like what you're given and feel you deserve more? Anyone else work for a company like this?

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AnonymousDecember 23,2022 at 7:46PM UTC
This is always the way things go in an acquisition/merger. It takes forever to get in sync. Especially when you are not the parent or controlling company.
You can reach out to the HR department to lodge a grievance if your bonus is lower than you think is fair and in line with the company guidelines.
AnonymousDecember 23,2022 at 10:10PM UTC
Realistically, you are unlikely to have any bargaining power this round. They will likely be norming salaries as the extent of the compensation changes for this year. We just went through a round of norming and some people ended up with substantial raises, while others got a minimal adjustment. It does have the benefit of leveling the playing field a bit. Next year (if you stay), you'll likely have more leeway.
AnonymousDecember 24,2022 at 1:43AM UTC
Unfortunately you don't have any champions to support your career growth. Your new organization doesn't know you and has no idea what your contribution has been so your leverage and any power much now be built from scratch.
AnonymousDecember 24,2022 at 9:42AM UTC
You have,no negotiating power. To earn more you'll need to jump to a new company and come in higher.
Debra SesholtzDecember 24,2022 at 2:08PM UTC
Restructuring due to acquisition happens all the time. Change and uncertainty can be stressful. In many large companies, performance reviews and salary increases are separate events. Unfortunately because of this restructuring, you’ll have to wait to see what your increase and bonus will be. Bonuses are not usually open to negotiation. Hopefully the company did well and you’ll be happy with your bonus. If you feel your salary increase isn’t enough, you could try negotiating a promotion. Until you know what you are getting, there’s not much you can do but wait until April. I hope you’re pleasantly surprised with both your bonus and salary increase.
AnonymousDecember 24,2022 at 5:37PM UTC
Not strange at all given the fact that your company is now owned by a completely new management team that don't know you, your boss or team. Right now they are just trying to figure our integration plans and how to transition your company into the fold.
AnonymousDecember 25,2022 at 5:25PM UTC
This is the standard operating procedure when companies get caught up in (particularly multiple) acquisitions. I worked for a company that was buying companies right and left. The acquired company eventually has to align its HR policies, including evaluations and raises/bonuses, with the new company. In large companies, it is common for managers below a VP level not to know how that will eventually play out. If a VP is part of the acquired company, they may not know how the raises will be distributed either.
AnonymousDecember 26,2022 at 7:35PM UTC
When an M & A happens often there are conflicting fiscal years or budgets and aligning those when they differ can create not just flux but angst in those who have been acquired. Until those internal leadership conversations happen about whose rules get adopted there will likely be zero change in policy that is clear because the triumvirate of HR/Finance/Operations needs to align with consistency. Best is to not push because if you do before they choose to discuss things you may find yourself out of work. If there are roles that cross over and cannot seamlessly align organizationally you will lose. Hang in there for a few more months or look now for something new.
AnonymousDecember 27,2022 at 12:35AM UTC
Your manager is trying to navigate the same uncertainty that you are.
His candor should be appreciated.
You can certainly ask your manager if HR can provide any additional clarity about company policy on bonuses and raises, or you can ask HR yourself. Be aware that policy might be in flux.
If you are otherwise happy with the job, wait for the transition to be completed. If you are not happy, begin searching for other opportunities.
Zeecil KimmelDecember 27,2022 at 3:01PM UTC
I used to work for a company that also had a very interesting bonus structure. Very little was determined by the individual's performance - most were the company's performance. In a banner year for my company in which they hit every number and their stock was up they claimed they would only be able to pay 80% of bonuses because of some reason no one understood. There is not much negotiation in these situations.
AnonymousDecember 29,2022 at 4:46PM UTC
I’ve seen both sides of this in my career. You will have to be patient this comp cycle round. I saw it in consulting where the acquiring company dumped everyone under a certain job title level as fast as they could and had only very few folks retained with LTI retention bonuses. Everyone who was left without LTI quit and went elsewhere. The core consulting practice with extensive industry experience collapsed. I went through an acquisition where the change of control packages per employment contracts were so generous, and the acquiring company was desperate to shed overhead, that everyone over a certain age with a few years of tenure walked out with packages (equating to year(s) of compensation) leaving almost no knowledge of the acquired company’s business and systems. That company didn’t plan on how to retain knowledge nor incentivized people to stay. After a year or so, remaining employees were able to renegotiate if they were identified as a critical employee by their management. This really boils down to determining what you want, what the market is for your skills, and reading the org as it evolves to determine how and if you fit. Good luck!