In the late 1970’s and early 1980’s I was working in a management role for a large international vehicle manufacturer. I was performing well in my role, and did in fact attract the attention of the American Managing Director, of the privately owned company. In the early 1980’s the world was going through another of the cyclic ‘financial crises’, when the division that I was managing, and another division in Canada, were the only two divisions of the company world- wide, that were making a profit. This resulted in the MD making a trip to Australia to meet me during his round of other business meetings.
Following this visit, it was announced that we were going to have an Australian MD, instead of the traditional American one. What followed was somewhat of a shock. The company operated on the fiscal year and my salary and bonus structure were set during the first calendar months of the year. My base salary and the bonus criteria had been set and signed off.
The new Australian MD decided that mid- year (September), he would change the bonus criteria, which would result in a substantial drop in the bonus payment. It not only impacted me, but all of the senior managers within the company. I was told that my bonus structure would be amended and that I would be paid based on the new criteria. After some deep and meaningful discussions, the new MD agreed to pay my bonus payment based on the original criteria, as I had already exceeded the fiscal year targets agreed. Following this discussion I handed in my resignation, as did another six senior managers in the company.
Looking back on this action, it became apparent that what the new MD was doing, was ridding the company of anybody who might prove a threat to his position in the future. The company did continue to function, despite the negative and regressive attitude of the new MD.
Barry O’Connor.
June 2023.
Following this visit, it was announced that we were going to have an Australian MD, instead of the traditional American one. What followed was somewhat of a shock. The company operated on the fiscal year and my salary and bonus structure were set during the first calendar months of the year. My base salary and the bonus criteria had been set and signed off.
The new Australian MD decided that mid- year (September), he would change the bonus criteria, which would result in a substantial drop in the bonus payment. It not only impacted me, but all of the senior managers within the company. I was told that my bonus structure would be amended and that I would be paid based on the new criteria. After some deep and meaningful discussions, the new MD agreed to pay my bonus payment based on the original criteria, as I had already exceeded the fiscal year targets agreed. Following this discussion I handed in my resignation, as did another six senior managers in the company.
Looking back on this action, it became apparent that what the new MD was doing, was ridding the company of anybody who might prove a threat to his position in the future. The company did continue to function, despite the negative and regressive attitude of the new MD.
Barry O’Connor.
June 2023.
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