Need advice - what would you do?
callktulu
Member Posts: 3,451 ✭✭✭
I'll start off with that I work in an at-will state, so my job is always on the chopping block with no explanation.
That being said, for the past 18 months, I've served as a Director-level employee at a small company. Without going into the specifics, I was hired in at a certain salary level, and I have signed documentation to prove this (obviously in the form of a signed offer letter). About 6 months into my employment, the company almost went under, and they had to cut salaries. This general announcement was communicated via email to the whole company, along with the message that these salary cuts were "intended to be temporary."
My salary was cut by 25%, and I understood and did not complain. There is no written or signed (by me) documentation of my agreement to this paycut. It was all verbal, and I was told that it was temporary (verbally). About 6 months later when we recovered a little, my salary was brought up by $10,000. Again, there is no documentation of this agreement, and I was once again told verbally that this was temporary. In fact, my boss and his boss both made "temporary" comments anytime the topic of salary came up (they were both reduced during this time, as well).
During my most recent quarterly review (which, like all my previous reviews, have been exemnplary & documented as such), I asked again about when will salaries be brought back to normal, especially since others have already been brought back up, and we're not in danger of going under again. I was told that the CEO would have an answer for me by end of May. OK.
When I spoke to the CEO on Friday May 28th, he told me my salary was never meant to come back up (after the $10k raise), and he claims to have communicated that to my boss and his boss (mentioned above). They never did tell me, and both claim that they were never told that, either. No apology. No accountability or respomnsibility anywhere along the lines of "I'm the senior leader of this company and this lack of/mis-communication is ultimately my fault." Instead, he actually blamed the company that just acquired us: "I can't just start handing out raises now that 'Bigger Fish' acquired us. Your salary - at it's reduced amount - was part of the financials, and to change those after the acquision would be decietful." Oh! So you do recognize the difference between right and wrong!
So forget all the lies and communication failures. I'm looking at risking my "at-will" employment by going to Human Resources and/or seeking legal counsel. I have documentation that says my hire-on salary is $XXX. They do not have documentation that says I agreed to permanently stay there. Is there a case there?
Yes, I recognize I'm angry and emotional right now. You don't have to talk me off the ledge, but I'd appreciate some non-judgemental advice, please. TIA
Comments
No risk involved that I can see in consultation with a good lawyer . He/ she can give you s pretty fair idea of what to expect .. Aways good to have an objective opinion. Take your time and get your ducks in a row first
Kind of stuck between a rock and a hard place. You can consult a lawyer but even if you do win and get your salary back, how long will you keep it? In an at will employment state your position could be eliminated 5 minutes after you win your case. Quite often when companies are acquired, the new bosses want an excuse to put their own people in charge (directors) and the old employees are screwed. I guess I haven't been a lot of help, but I just thought these things need to be considered. Good luck. Bob
are there comprable jobs in the area?? may be time to shop around if there is, if not may just have to bend over and take it, but remember and keep it in back of your mind next time they need "favor".....
I'm no lawyer, but my guess is your contract was with the original company and if it wasn't in the agreement during the takeover you may be stuck with current situation even if it isn't morally right.
Thanks Bob, yes that's been considered. I'm trying to be a man of principle, but as we all know, in The Real World there are always compromises, not the absolutes of integrity we'd prefer.
Good advice, thank you!
I would ignore all the drama ofwho said what and why.
it comes down to one thing- do you want the job at the current salary or not. Yes or no.
yes get to work
no move to a new job
I think you meant to say, "If yes, then get to 85% work!" 😅
Tough call, I guess it more depends on if this is the hill you are willing to die on?
In an at will state you may have no legal recourse at all.
As noted you may want to inquire of a attorney but you might want to make sure the first ten minutes are free!
But "Resentment" is my middle name! 😋
If you feel you can longer do the job at your current level of excellence, I would look for another job while still employed. Since your company was bought out, I doubt the new company has any legal responsibility to honor your previous contract with the now defunct company. Just remember all of the advice given here is free of charge, so that's exactly what it's worth. Good luck!
Time to move on. Always get salary discussions in writing.
And fiery auto crashes
Some will die in hot pursuit
While sifting through my ashes
Some will fall in love with life
And drink it from a fountain
That is pouring like an avalanche
Coming down the mountain
Great advice
WWID? I’d keep being a great employee while securing a better job elsewhere. Resentment is tough to shake...especially when you’ve been treated poorly.
Playing devil's advocate here, but it sounds like someone knew the acquisition was coming, and purposely gave the buyer deflated budget numbers to secure the sale.
You are in a tough spot with some soul searching to do. I know at my age, starting over is the last thing that crosses my mind. The pot would have to be super sweet for me to jump ship.
Good luck in whatever choice you make!
I have a fair amount of merger & acquisition experience.
This strategy was intentional by your current employer to make the acquisition more appealing to the purchasing corporation. Yes
If you are a DIRECTOR at a smaller company that was recently acquired, there may already a plan to replace you in the next 24 months or merge the scope of your duties with an existing role and retitle you.
Maybe there is a severance package involved, maybe not. (Probably is & probably a good one).
Not knowing all the variables, I would be seeking alternate employment based on the M&A alone.
I have seen what Gregor suggested and the opposite- say the M&A process takes 3-6 months, all of a sudden 2/3rds of the staff is getting title/salary bumps before we take over.
You’re in a no win situation there. If it’s tolerable, then put your head down and continue doing your job
Otherwise ....... take it in the shorts while you take your time finding your dream job. Then grin as you walk out the door knowing you win, they lose.
I wish you good luck with whatever path you choose, I had a three year tour in the Army and some time as a machinist after that. Reading these post, I realize even more than before how fortunate I was to be employed by the Graduates of West Point. I was not a government employee and no union to protect me for 41 years. If they were not satisfied with my performance I would have been out the door in a heart beat. My last boss, the President of the Association of Graduates at West Point for 17 years was a chopper jockey in Nam. Not a week went by that he did not tell me how much he appreciated my employment. I miss him terribly.----------------------------------Ray
In an acquisition, the acquiring company is looking for synergies from the onset of the due diligence phase. As your company gets integrated folks look to take cost out and job eliminations and reductions are pretty common.
You need to decide if you want to stay there at your current pay rate. If you do, you need to be a bit cautious of who you irritate right now until the new org is rolled out. Especially if there is anyone from the purchasing company with a similar role, title or responsibility.
Yeah, there can be some pretty good graduates from those institutions... I'm partial to the United States Air Force Academy myself.... ;)
Tough one but the employer has the cards Only thing you have is choice to play their game
It blows, I know, just a touch different on the situation. look for employment while continue working, best thing, imo. I walked out on my on accord and then got to wondering what am I going to do. It all worked out but tough on the mind. Middle management is a thankless job with no roads other than "rode closed ahead." Best of luck.
Thanks, everyone, lots of good advice and kind words. I appreciate everyone's inputs!
So let's change the scenario slightly, as I've learned a little more info (but not in my favor).... turns out my boss & his boss did know about it, but we not allowed to tell me. So that means the CEO is even MORE at fault (for dishonestly) as he claimed he told them to tell me I was never being brought back up to my original salary. But he claims he told them to tell me.
I'm looking for new jobs, but I'm also sticking this out (not gonna walk away w/o something else lined up). Of course, there is still lingering resentment for which I'd like some closure. Do I schedule a meeting with them and ask for some clarification?
I wouldn’t. Be a model employee, find a better job, give notice, and move on. Avoid scorched earth on the way out...those above you have already proven they’re deceitful and spineless...no need to provide them ammo to torpedo you somehow.
Some questions.
Before the salary reduction, were you happy at your job?
When the reduction happened and you were working for less, other than the money, were you happy at your job?
Were you able to support yourself/family with the income?
Are you happy with your job currently?
I agree that what the company is doing is questionable and morally misguided. I understand your frustration at being deceived and lied to over and over again. I honestly don't know if I could work for a company that did stuff like that and I have left companies for questionable practices. I also understand that being happy in your work is very important. It can make the day go faster and make life much more pleasant.
My $.02, if it was me, I would probably look for something at another company while continuing to work there. Once I was confident in my new job, I would put in the proper notice and leave without giving them an ear full. They know why you are leaving. If you decide to wait for a severance package, it may never come and you will be out of work looking for a job.
I like how some of y'all keep mentioning severence packages. Cute.
My response is usually, I wasn't looking for a job when I found this one.
Wife unit usually isn't thrilled, but something always comes along.
On closure. My thought is first find the other position. If the present company gives you an exit interview state your reasons for leaving. With or without an exit interview write a letter outlining the deceit, your reason for leaving and your regret in having too, mention your excellent job performance reviews. Mail to HR and also mail a copy to the CEO's bosses and anyone above them. If I was on the board of the company or in another position of concern I would not want a dishonest CEO running the company.
Find a new job, send the letters, be done.