[Updated on June 9 with additional information.]
We’ve got an update on what’s happening over at C to the L to the A. About a week or so ago a Redditor posted that CliftonLarsonAllen said it was cutting the duration of employee pay cuts by two months, ending now on Oct. 31 instead of Dec. 31.
Back in early April, CLA announced that it was reducing all employees’ compensation by 10% starting on May 1 and lasting through the end of the year, which was met with some grumbling by CLAers.
So, I checked in with a source at CLA on June 2 who told me that what the Redditor posted the day before was true. And I also got an additional nugget of info:
[CEO] Denny [Scheppler] specifically said we will be reinstated on or before November 1, but have no details on how they’re deciding when it will happen and if we’ll receive back pay. They also gave every employee CLA branded Bluetooth speakers, which was generally received as a kick in the teeth. They likely ordered them before all this started, but probably should have shut them in a closet until our pay was reinstated to avoid looking like we’re spending frivolously right now.
Thanks to a couple CLAers, we got photos of the Bluetooth speakers!
I can only imagine how many of these are going to eventually wind up on eBay. But hey, at least one person who texted us on the tipline was stoked about their gift:
That’s great and all that CLA management is ending everyone’s pay cuts sooner than expected, but CLAers who got their hopes up about getting back pay (like the person we talked to last Tuesday) were given a dash of realism when the firm outlined in its Reinstatement Plan that “reimbursement of salary” ain’t happening (thanks to the tipster who sent us the plan):
June 1st Announcement of the Reinstatement Plan:
Today we are announcing the details of the Board-approved Reinstatement Plan. This plan was prepared to provide guidance on key actions to execute between now and 12/31/2020. Similar to the Contingency Plan, specific measures are stated which impact (a) Compensation and Benefits as well as (b) Cost Containment measures. Highlights include:
(a) Compensation and Benefits:
Hiring Freeze lifted: On 7/7, we will return to the Recruitment, Requisition and Hiring Processes as designed in early 2020. The CPOs are the primary decision makers and will execute each of these decisions in light of current economic conditions and production efforts.
Evaluation/Compensation cycle: All processes will resume as per our normal schedule. We will analyze market data and competitive analysis for advancements and compensation increases effective 11/1 for all employees, non-Equity Principals on 1/1.
Salary: Reinstated to the 4/30 amount on or before 11/1/2020 (earlier than the original 12/31/20 date).
- Annual Salary on 4/30/20: $50,000
- Adjusted Salary on 5/1/20: $45,000
- Reinstated Salary on 11/1/20: $50,000 + any market compensation adjustment, as applicable
Important note – this is not a “reimbursement of salary” back to 5/1.
(b) Cost Containment:
Significant travel restrictions – no non-client air travel through 12/31
Events turned virtual or cancelled through 12/31
Only essential spend is permitted – every dollar matters
Oh well, at least you guys got that nice Bluetooth speaker.