I’m your manager and as you know we have this funny end-of-year routine where I raise your salary for no reason and give you a ridiculously high yearly bonus, planned as 15% of your gross yearly salary but usually more than that.
Well, today is your day! Base salary raised by ~2% and 2016 yearly bonus of slightly less than 20%, which prorated (because you worked 90% this year… yes, 10.78 months out of 12… yes, you took unpaid sabbatical for slightly more than 5 weeks) becomes 17.5% which means more than planned anyway, and way more than you accounted for on your NW spreadsheet, I guess!
Wow… thanks. I’m so positively surprised. But wait, dear friendly manager, how do you know about my NW spreadsheet??
“Hey RIP, how is it going?”
Hey, hi, ciao, sorry not now. It’s not the right moment my dear imaginary friend. I’m having an imaginary conversation that makes fun of my actual conversation with my manager.
“…what if I and he/she were the same imaginary person?”
Ok, jokes apart, what an amazing news! 2% increase and a super bonus way higher than expected! Anything else dear manager?
Of course! Here’s an extra stock grant for you. A small one. It’s roughly 22K (gross) worth of stocks, vesting in 4 years. It’s an extra 5.5K CHF per year (assuming our stock price stays constant over time)
Btw, the yearly bonus, in “naked numbers”, is 26K (gross) CHF. Enjoy!
Holy (spread)sheet! It’s dramatically awesome. It’s terrific. Btw, what about the other news, the one I’m waiting for…
Check your inbox 🙂
Ok, cool, thanks.
Good news, your request to change your work week has been approved. You’re all set to go.
We’re happy to confirm that, effective 01-01-2017, your total working hours will change from a 100% full time basis to a part-time basis at 80% of the full time hours set out in your employment contract.
Thank you so much Hooli, you’re really the best place where to work.
So, guys, it’s official now. I’m left with 3 more Fridays to work and then, probably, I’ll never work again on Friday.
Well, it’s not actually true, since thanks to Hooli’s awesomeness I can trade my Friday with another day of the week, each week if I want (assuming it doesn’t negatively impact my team). Plus I’m not aiming to “not work” when I’ll be FI. It’s just that I’m left with 3 more Fridays of mandatory work.
That feels just great.
Because right now I’m scared. I saw the pay cut. Ouch. It’s around 30K gross on base salary (+6K on expected bonus). I’m scared I’m paying so much to… to do what? To just fuck around?? Oh my god I’m going to become poor and lazy, watching television all day!
Let’s take a look at the actual situation:
- I’ve worked 90% in 2016 and my NW increased a lot even with the 27 business days of unpaid leave.
- I’m going to work 80% in 2017 and salary doesn’t scale that way: 80% of the gross is not 80% of the net. Thanks to progressive taxation I’m going to earn more than 80% of my current net salary. Say 85%.
- Some benefits don’t get reduced. I’ll keep getting health supplement for me and Miss RIP in full. It’s ~700 CHF gross per month, not prorated.
- Stocks will keep vesting as before. They make ~30% of my salary and this is not prorated too!
- I got a 2% base salary increase for 2017.
- My performance for 2016 were just “ok”. I may focus on exceeding in 2017. I have colleagues that have been promoted after switching to 80%. Expectations scale accordingly. Tons of studies show how working 30-35 hours improves your productivity density.
Given all the above I’m pretty sure I’m not going to perceive it. I’ll earn roughly 95% of what I earned in 2016 (which is a 90% year).
There’s nothing to fear.
Time to enjoy these 52 extra vacation days 🙂
Next: how to use this extra time I purchased back?
… A story for another post 😉