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BLUF. I must tell my managers that they and many of our individual contributors will no longer receive an equity award as part of their compensation. 

Our company decided that most managers and many  individual contributors (who are all in same "grade") will no longer be awarded any stock grants as part of their compensation packages. This has typically been awarded to higher performers during the annual review process. There will be no other change in compensation to offset the loss of the equity award. 

Honestly, I'm really challenged with this because I don't think this is a good decision. I'm a middle manager in this Fortune 500 company. I had no input to this decision. And senior level management will still be awarded equity. 

I can't look anyone in the eye right now and say that I think this is good decision. It will create retention problems. It will reduce people's level of engagement. It will make recruiting harder. It's just not a good decision for the business. 

Wondering if it's time to find another job or just suck it up and deal with this? 

Thank you for letting me vent. 

tomw's picture

Suck it up and deal. If you found a new job every time you disagreed with upper management and had to convey the message to the team, especially as you work your way up, you'd probably be changing jobs every few months.

Kevin1's picture

There has to be a reason behind the decision.  Most likely, the organisation could no longer afford the scheme and remain competitive.

most likely, a choice was made to cut the scheme or cut head count.

Even if you can't uncover the actual reason, you need to have a mindset of the decision was made in the best interest of the organisation and therefore the employees as well

Hope this helps

kev

 

Phantom2014's picture

I understand it's most likely a cost issue for the business. My biggest disappointment is that the senior managers are keeping the equity rewards for themselves, but cutting them for managers and individual contributors. It looks very greedy and self-serving to me. And I've only changed companies once in the past 18 years. I probably won't change solely over this decision, but it's not helping loyalty and engagement.

AllBusiness's picture

You're in a really tough position, being charged with communicating (an apparently self-serving) decision that you didn't make. Is there anyone to whom you can express your concerns and get more information and background about the decision?  Are you planning to go through with the assignment? It sounds like you have a values conflict on your hands. I would feel alienated and angry if in the same position as you.