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compensation plan

  • Thread starter Thread starter hawaiial
  • Start date Start date

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H

hawaiial

Guest
i work for a fortune 500 finance company as a branch sales manager. we are a b/c lender and we make secured and unsecured loans to renters and homeowners. i am paid a salary + commissions. recently the company added something to our commissions plan that i feel may be illegal. they call it "1st payment defaults". let me explain.

branch managers are being penalized 50% of their commissions if more then 5% of the offices unsecured loans booked do not make their 1st payment within 90 days. a branch manager will lose 100% of their bonus if the office exceeds 7%.

these loans are underwritten by the branch manager and underwriters in a centralized office in chicago. if a customer fits into the guidelines that the company designed then we approve the loan.

i feel that the branch managers are unjustly losing their commissions just because these customers don't make their 1st payment within a specific timeline. why should we lose our money when someone else doesn't pay their bills on time. is this legal?

 


E

Ex HR Guy

Guest
If people don't pay, the loan is a bad investment. If you get paid to bring in good business, and the business turns out bad, it's natural to want to share the loss, isn't it?
 

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