When your boss reneges on a promised promotion and raise

Dear Bob …

I recently started working as a mid-level manager at a small company. My boss initially ran my department and another department, however she was in over her head and making a lot of mistakes. I was asked to run my department and she was moved to only run the other department. At the time I expressed my concern that I did not want to take on this position until there had been some discussion of a salary change.

In any case, I now report to the owner/CEO of the company. My new boss has recently contracted a part time CFO who has committed to work approx. 4 hours per week and will also be my boss because he will set my priorities and provide some oversight to my team.

It took a few weeks for them to sit down with me to discuss compensation, but the three of us sat down to discuss it a couple of days ago. I was told by the CFO that my salary is competitive (it was on the low side of competitive when I started — so much so that I had negotiated a salary review after 6 months — which is just about to come due) and that no adjustment was going to made.

Instead there would be some kind of bonus program (although the specifics of the bonus program had not been determined — other than that the bonus would be paid based 50% on company performance and 50% based on personal performance and the bonus would be paid after the next 6 months).

I was also told that I would now be a member of the senior management team and be able to contribute more towards running the company. I was also informed that I had been identified as the successor to the part-time CFO in that when he had helped us stabilize the company I would then take that position. When I asked about that it was then retracted that I was definitely the successor, but that there was no other plan in place and that it would depend on my excellent performance.

I expressed my displeasure about the fact that they were not offering a salary increase, because a bonus would not increase my base and because the bonus was not as much of a sure thing. I also expressed that the recent changes would not have been possible were it not for my skills and the value that I bring to the company.

I also mentioned that I would still like my performance review as was agreed in my offer, whether or not it came with an increase.

I may decide to find another position in a more financially secure company that has a more competitive compensation package, however I don’t know what to do right now. Should I:

1) Push for a title change due to the increased responsibility

2) Discuss the issue again with the owner and let him know that I still am displeased

3) Continue to press the issue of the performance review

4) Turn down the addtional responsibilities due to the lack of an increase

5) Do nothing and try to maintain a positive attitude

6) Commit to this new role and work to get the bonus and bring up an increase at a later date

I am very nervous about this situation because I did the same thing at my last job — my boss went to part-time and I did all of his work, but in the end someone else was hired into the position.

This was one of the main reasons that I left my last job.

Thanks for any thoughts you might have about my situation.

– Getting the work but not the credit

It’s a tough situation. Don’t push and you won’t get anything. Push and you’ll be considered pushy, and a malcontent.

Nor can you entirely ignore the gender issue — as a generality, given a woman and a man pushing equally hard, the available research seems pretty convincing that both men and women will be likely to view the woman more negatively than the man.

But first, before anything else: If you want the CEO to think of you as an executive, you have to think like an executive. In part that means embracing the risks associated with a bonus program. That’s the point: Executives put part of their compensation at risk so it depends on their own performance and the performance of the company. In return, the potential size of the bonus should be much bigger than any salary increase would be.

Here’s one approach. Modify it based on your knowledge of the CEO’s personality, or don’t do it at all if you don’t see any real chance of success. Schedule a one-on-one meeting. In it, say something like this: “I want you to know that I appreciate the opportunity you’re giving me, and the confidence you’re showing in me. What I’m looking for right now is more clarity, not more money.

“When I took on my current role you agreed to a six month review, which was due last month. I understand that circumstances change. In the future, when they change, I’d sure appreciate your telling me in advance so I know what to expect. As things stand, I was expecting a compensation change last month and when I asked about it, it sure seemed to me like you thought I was speaking out of turn.

“I understand you changed your mind about the six-month review. That’s okay. Right now, from what you’ve told me, I have an opportunity to grow into the CFO role, and an opportunity for an end-of-year bonus. Both will depend on my performance between now and then.

“What I’m looking for is more information about what “strong performance” looks like from your side of the desk. I think both of us would find it helpful to make sure we’re on the same wavelength. And as long as we’re talking about the subject, since you’re asking me to accept a bonus package as an alternative to a salary increase, it sure would be nice to have some idea of what kind of money we’re talking about.”

Then let him talk – from this point forward, don’t argue, don’t negotiate, don’t do anything except “active listening,” clarifying and summarizing his points back to him to make sure the two of you have the same understanding.

When you get back to your desk, document the conversation for your files, but don’t send the CEO a copy (that sends a very bad message).

If the CEO says all the right things, give him a chance to carry through on them. If not, quietly start your job search right now. You’ll either find that your compensation is in line with your value in the marketplace, or it isn’t. If it is, you won’t get any great offers.

If it isn’t … congratulations on your new and better position.

– Bob