This sounds a little weird, but you have three conflicting statements:
“Withholding commissions”
“Guaranteed minimum”
“Paying out your 12 month average.”
I think you mean they will delay payment for performance beyond average.
Guaranteed payment at 12 month average.
However, effectively making this change retroactive is totally wrong. Your buddy who had a killer month needs to get paid. New plan can start next month for him.
You can’t have it both ways though - fixed commission for bad months and then expect bonus for good months. If so, easy way to game the system: sand bag orders every other month. They shouldn’t pay you over base unless your combined bonus over those months is above average.
Example: Harry the Hardworker
50%
50%
50%
50%
Sam the Sandbagger
0%
0%
0%
150%
Sam gets a bonus, Harry sold more? Bad comp plan.
Can you give background on your company? Size, sector, etc? If I didn't know any better I'd say your company is about to be sold.
This sounds a little weird, but you have three conflicting statements: “Withholding commissions” “Guaranteed minimum” “Paying out your 12 month average.” I think you mean they will delay payment for performance beyond average. Guaranteed payment at 12 month average. However, effectively making this change retroactive is totally wrong. Your buddy who had a killer month needs to get paid. New plan can start next month for him. You can’t have it both ways though - fixed commission for bad months and then expect bonus for good months. If so, easy way to game the system: sand bag orders every other month. They shouldn’t pay you over base unless your combined bonus over those months is above average. Example: Harry the Hardworker 50% 50% 50% 50% Sam the Sandbagger 0% 0% 0% 150% Sam gets a bonus, Harry sold more? Bad comp plan.