Can my employer terminate me before commission is paid on a signed deal and pay me $0? My SaaS comp plan (not yet signed...didn't have one at the beginning when I started, first sales job, my bad) says if I’m terminated (even w/o cause) I won’t get any commissions that “become payable and/or are deemed earned” after my termination date. Commissions are earned on New Logo Billing after customer payment, but it says to be eligible for commission I must be "employed with the Company on the date the incentive is paid." I close complex deals that delay invoicing by 2-3 months. So if I’m let go before my commission is paid, I lose the commission. Has anyone successfully negotiated language to protect their earned commissions on deals they’ve closed, even if they leave or get terminated? Any tips on how to approach this without sounding like I’m planning my exit? Also, is this "industry standard" as management is telling me?
Ha, definitely don’t expect it…I’ve already crossed 100% of my annual quota after 5 months of the year. Just don’t want anyone tempted to cut me loose before that big paycheck. I’m generating lots of pipeline and advancing deals and positioning myself as a huge asset to the team. Doing what I can on my end.
If they cut you loose just because you earned a big check and they don't want to pay it, that's definitely not an org you want to be at.
And to piggyback on this - it would be EXTREMELY short sighted to cut a rep loose that is closing business AND generating significant pipeline...the commission checks they're cutting are literally being paid for by the business you're bringing in.
Agreed. It happened to me. I decade later I still remember it. The HR weenie said it is in the small print of the comp plan "company reserves the right not to pay commissions to salespeople not actively employed on payday." If you get screwed from a booked deal, I'd make sure all former coworkers know about this. I have never met a salesperson who enjoyed getting screwed by the company. For what it's worth, this company is no more.
Couple points here: 1. In reading what you have here by the letter the company probably doesn't have to pay you out on the deal, because you won't be employed as of the date the payment will come due 2. Also the payment from the customer must be received if I'm reading this right, so you've got an additional bar to get over. 3. I think it's totally fair for you to negotiate that if you sign a deal and are terminated after the deal is signed but before you are paid out, you can still receive payment. They don't have to say yes though. Frankly speaking this is just a bad look for leadership. Many times sales professionals don't work out at a company, for whatever reason, and have to be terminated. My PERSONAL approach is that if you sign something, bring in new business, you will get PAID on that, no matter what. But others take a different approach, I suppose.
Thanks for these thoughts. I’ll control what I can control and keep making myself as valuable as possible so this is ultimately a non-issue.
I'd (quickly) reach out to Dan Goodman. He is a client advocate that is easily reachable on linkedin
Thanks! Dan was great! Told him the verbiage and he said, "Yeah, you're not signing that." Exactly what I needed. Back to what I can control!
It sucks, but they can and will. Why are you expecting to get fired?