ARM reward 2024 - illusion
#ARM played numbers game with 2024 rewards. Full illusion created to employees. Nobel award should be given to Finance HR head. Let me give an example. I work from India locationa, completed 1 year and hence eligible for a full year hike. E.g. consider my salary as Base = 10 lac Bonus = 1 lac (10% of bonus) RSU = 0 (only annual RSU given) CTC = 11 lacs Now let's understand the structure change: Bonus removed and added as 50% to base + %hike on this + RSU equivalent to current Bonus My hike showed as 12% And new Base = 11.2 lacs (10 lac base + 0.5 lac bonus + 0.7 lac hike) RSU = 1 lac (25% for 4 years ie, 0.25 per year) So effective CTC = 11.45 lacs Hence, effectively, 4% is hike. But management is showing it as more than 20% with new structure change. If ARM stock multifold to 4X times then only we will beat 2023 CTC. Else, there is no change in CTC. Poor ARM engineers. Let's see how smart ARM engineers are in understanding this 😂 #corpfinance #arm #finance #semiconductor #salaries #rsu
It would have been better if “they” would have also compensated with increased annual RSUs. This would have kept us at same TC/year. 2024 reward is very clever game played by ARM. I joined two years back and I was shown lucarative TC/year projections for upto 4 years. Now I feel that it was just an illusion for short term to attract talent and compete with big tech’s TC.
Yeah I hope they stop doing these projections when hiring someone.
Yeah I was hired a couple of years back and this almost sucks. The Compensation seems to be going down. And then there is the talk about the efficiency. Seems like time to move on. Although I really liked my team and was enjoying the work. The work pressure is too much though. I have heard my manager and VP say things like " why not do these tasks , I know it is a little too much but we need to do it to maintain stock prices" Overall life has started to suck
Curious to know, 1. Does the yearly RSU refresher get increased by 50% equivalent to reduced bonus (I understand that 50% of target added to base) 2. Based on the example above, the bonus removal is here to stay ? Base increase has 50%, unless the RSU refresher have increased forever (remaining 50% of bonus), they have successfully removed 50% bonus starting 2025 ?
Annual bonus removal is abolished permanently. It is one time RSU grant for this bonus removal. No increase in grade wise annual RSU grant. Are you working in ARM ? Just curious to know if you read Rene’s email and got what he clearly said in it.
I saw relevant opening at ARM and was looking to apply, came across this post. If ARM is going the path of NVIDIA, no bonus or additional pay etc, base pay increase of 50% bonus target is good. If there is no increase in yearly refresher or added benefit (like additional 401k match, some quarterly bonus like intel) it’s of no use, so they are reducing effective TC by half the bonus amount going forward. How’s this internally perceived? This must not have gone down well with employee/ managers likewise as Bonus % is higher for Senior levels.
Yes.. same here.. if you get 30% hike this time it will be actual 12 % Now you can calculate what 🥜 they have given to all of us.
Can someone please elaborate on this new update?
There is so much information in so many places. Read Rene email , blind threads and comments , and FAQon intranet. You will understand what every body is talking about.
I'm yet to join the company so don't have access to any emails or the intranet. This is the only thread on blind about it. So I would appreciate any more information about this.
What were the average annual bonus & personal bonus percentage numbers people actually received in the last few years? For eg. If the offer says target 10% annual bonus + 25% (of that 10%) in personal performance bonus, what were the realistic numbers people actually received?
100% of that 10%/15% in the last 3 years ever since I joined
So just just to confirm that I understand this correctly, everyone got 100% of their target annual bonus? Did seniors have a 10% target while staff had 15%? What about the personal performance bonus? Btw, I like your username. Haha!
Did you already get an offer?
I will be a new joiner at ARM UK in 2024 June. My offer was : Base 70K Pounds Annual Bonus 10% of Base New Joiner RSU : 100K Dollars ( 3 years vest 52%, 24%, 24%) Annual RSU 40K Dollars (3 years vest) Now they revised my offer to Base 70K + 5% of & 70K No annual bonus New Joiner RSU : 120K Dollars ( 4 years vest , 42%,21%,21%,16%) Annyal RSU : No idea about new vesting schedule This looks like a downgrade to me. First 10% Annual component is replaced by 5% Base salary hike( Loss of 5%) and then the sligthly increased new joiner RSU are divided over 4 years instead of 3. The annual rsu are also divided over 4 years and they didnt share the vest schedule for them. I would like you guys to help me evaluate the changes and re-negotiate the offer better so that I am not at a loss. I dont know how they can reduce my offer after signing the contract with me as a new joiner. Am I missing something over here?
Rsu looks good. If you consider the RSU it’s a good offer. For example QCOM offers 70 or 80k RSUs at this level. It might be lower, I’m not sure
The offer is good. But after the 2024 revision it went down. I already signed the contract for original offer but they revised it just now. How can I re negotiate?
But bonus was never guaranteed! Now the base is guaranteed. I’m not sure how it is in India, but in UK if you are to get a mortgage, they ignore your bonus and RSUs. Banks only look at base. So guaranteed payment is better
I am comparing the last few years only. last year 125% bonus was paid in one shot. RSU will vest over 4 years and upon that too volatile in nature. The point here is CTC not increased on hike. Many may not be interested in bank loans on base increase.