Review next year’s variable compensation eligibility
targets
Variable compensation plans with annual targets require the
company to review and adjust them in a timely way, or the previous
year’s will apply by default. If the targets remain the same
for several years, the chances are that they will become a
permanent condition of the plan. In this case, the company would
only be able to review the targets in employees’ favour, that
is, give a higher payout.
Check if the applicable CBA needs a salary adjustment on 1
January
Collective Bargaining Agreements provide, among other things,
for mandatory salary adjustment to compensate for inflation losses.
Many have 1 January as the base date for this adjustment, which
often coincides with performance reviews and merits increases. It
is important to keep in mind that the company cannot grant a merit
increase in lieu of the CBA increase, because they are different
kinds of payment. If the CBA negotiations are delayed
