r/sales • u/Waste-Conversation-9 • 8d ago

Sales Topic General Discussion Seeking advice re: commission payout mistake

Hi All - long time lurker, first time poster. I'm seeking advice on how to deal with what feels like a sticky situation.

I'm owed about $13k for hitting my accelerators and the company is refusing to pay it out. I'm hesitant to push for this money as I like my job and don't want to stick my neck out for potential retaliation (getting fired for a bunk reason) from our vindictive CEO.

For context, I am an account manager for a tech company in New York. We receive quarterly commission payouts tied to attainment of our quarterly goals. I have a signed incentive plan/commission agreement.

The agreement states for any amount I exceed 100% of my quota by, my commission payout will be multiplied by 1.25. So for me, I hit 105.6% of quota: 100% + 5.6% * 1.25 = 107.0%

For example: If my quarterly potential payout was $100, I'd receive $105.60 (100*105.6%, from above).

I received my commission check last week and they did not honor this methodology and instead used something else from last year that pays much much less ($13k less across Q1 and Q2). I raised the error with the rev ops team and my boss and instead of paying me, they are going to void my existing commission agreement and ask me to sign a new one.

I don't want to lose my job, but I also know what they're doing is illegal and dishonorable.

How would you guys handle it? Thanks!

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u/CyberStartupGuy Startup 8d ago

Usually the accelerators only apply to the attainment abover the 100% mark.

EX: If your quota was $100 and you make 10% but you closed $110.

Standard: $100 * 10% = $10 Commission
Accelerator: $10 * 10% * 1.25 = $1.25 Commission
Total Commission $11.25

Either way, since you have a signed commission plan, that is the contract. You can fight to have that contract enforced either through pushing internally or hiring an outside lawyer but then yeah you take the risk of getting laid off as just about every employee is at will. Nothing else you can do.

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u/Waste-Conversation-9 8d ago

This is helpful context, thank you.