Congratulations! You’ve Been Promoted — And Took a $75,000 Pay Cut
There are few words more dangerous in corporate America than:
“We see you as management material.”
Our sales manager, Bill, had been around for 25 years. He knew the customers, knew the products, knew the salespeople and, most importantly, knew which salespeople needed encouragement and which needed a swift kick in the rear.
Bill was good. Maybe too good.
One day, the Senior Leadership Team — otherwise known as “They” — gathered in the conference room.
The stakeholders weren’t getting the return on investment they expected.
Translation:
Somebody had to go.
Out came the flip charts and Magic Markers. Somebody listed the highest-paid employees.
There was Bill.
After 25 years of helping build the company, Bill was offered an early-retirement package.
Fortunately, Bill was delighted. He took the money and headed off to travel with his wife.
Now management needed a replacement.
Everybody knew Mark was the obvious choice.
Mark was the company’s heavy hitter. Top producer. Great with customers. He had even mentioned a few years earlier that someday he’d like to move into management.
Corporate remembered.
“Mark, this is a fantastic opportunity. It’s your pathway to the C-suite.”
No more prospecting. No more cold calls. No more chasing customers.
Instead, he’d be recruiting, training and providing leadership.
There was just one small detail.
Mark’s current compensation:
$40,000 salary
$125,000 average commission
Total: $165,000
His exciting new management opportunity:
$60,000 salary
Up to $30,000 bonus
Maximum: $90,000
Mark accepted the position to initiate his climb up the corporate ladder and somehow landed $75,000 closer to the ground.
But there was more.
His customers became house accounts. “They” were thrilled. No more commissions and they filled the position.
Instead of selling, he was now recruiting salespeople, training them, babysitting them, firing them, sitting through business reviews and explaining to senior management why Joe only made 500 calls last week.
Weekends?
Management meeting.
Evenings?
Salesperson emergency.
Monday morning?
Improvement plans.
And if the team missed its number, Mark got to explain why.
After a few months, Mark decided the C-suite wasn’t quite as attractive as advertised.
So Mark did what corporate America occasionally describes when somebody disappears:
He folded himself back into the community.
Except Mark folded himself directly into a competitor — along with 20 years of industry experience and half his customer relationships.
So What’s Next?
Not to worry.
The Senior Leadership Team immediately began an exhaustive nationwide search for the most qualified replacement.
After careful consideration, they unanimously selected the CEO’s grandson, Milton III.
Milton had just received his bachelor’s degree in Community Service from Southwestern Mid-States University and brought extensive sales experience to the position.
He had been named the 3rd Quarter, Top Door-to-Door Salesperson for Cutco Knives.
The announcement went out companywide:
“Please join us in welcoming Milton III, our new Vice President of Sales.”
And somewhere across town, Mark was having the best sales month of his career.
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You Cant Make this stuff up 