Schwab's transitioned to a new bonus structure as a % of base salary. Existing employees have their bonus % based on where they are today. However standard rates have been set for future hires that in some places exceed existing employees % bonus for the same job. Thoughts? Seems legally dicey.
9 replies (most recent on top)
Schwab Green. Alignment adjustment increase when I came over. 5% company wide increase. Now my bonus isn't changing. Feeling like HR finally got something right. For Green at least.
Are you a real director, as in MD, steak sauce level or above? Or are you just a wannabe Director? This is like a having team of 20 senior managers, ROTFLMAO.
Blue Director here. New ABO calculation make me 18%. Base salary is middle of the range. People keep saying that Schwab Green employees have lower base but higher ABO.
It took a year to implement this but expect integration to be done in 1.5 to 3 years…🤔
I like how we waited a year to find out Schwab HR is effectively doing nothing. That means target ABO percentages are all over the place for Schwab Blue while Schwab Greens are still based on title/level. No compensation mix adjustments at all. Based on the general consensus that Schwab Blue has higher base and lower bonuses than Schwab Green, it seems like Schwab Green has more to gain from a higher than target funded bonus pool. Then again, its mostly discretionary.
Schwab Green Director is 40% ABO and Sr. Manager is 30%. I’m curious how that aligns with Schwab Blue after the fixed dollar amount is converted to a percentage.
Just noticed the ABO… what’s going on here it’s completely opposite to what industry follow.. As per industry senior(More experienced) employee large % amount in bonus than less experience person.
Based on the rough calculation if someone’s base salary is 100k and bonus is 15k now that person will get (15k + 5% = 17.5k) round over to higher number i.e. 18% bonus. Employee who is getting 180k base and 20k bonus now that person will get 12% as bonus :) what is this going on.. really!!
This may be the conflation of two things going on simultaneously. Green side bonus targets were % based. At level X you could expect a bonus (assuming expected performance: yours & TDA's) of Y% (15,20,30..) annually, paid in quarters. Blue side expectations as I understand were at a flat amount: In role X you could expect an annual bonus of Y USD.
Also, green side comp was bonus-heavy. I could get a higher base salary on the street and raises were never that great, but when you add the bonus plus ... total comp was competitive. Blue side comp, ITMT, I understood to be more base heavy.
I think the company is trying to reconcile those two visions of the world, so a blue sider may feel slighted that his "new" peer is getting a higher bonus, while that green sider may feel slighted because she's been told that Schwab salaries are supposed to be higher, and hers isn't keeping pace, ...
Haven’t seen any communication in this regards. Is there any official announcement in the way or this is just a speculation?
I don't think there's anything legally dicey about it. But I do think that existing employees will not be happy if a new person is getting a higher bonus. It's more likely to drive attrition.
I really don't understand why HR is making it so complicated. Just set a flat % rate for each grade level, and allow your manager to go +/- some amount based on your performance.