High earner - but unsettled

[Iprobap]

Annual pay about £250k, between 16% - 50% discretionary bonus and shares. Overseas based for UK global financial services company.

Personally still earn full salary, but possible no increase, bonuses and shares this year and next few maybe? I foresee retrenchments in future because of COVID-19.

I know we are on different scales on here and this is no brag. Curious to know if others are as unsettled by possibility of losing benefits because of impact of COVID-19 on global economy?

@LongPauseNoReply good for you!

Thats not how people keep thier money

I was being facetious but you can spend some without blowing it.

@larrygrylls I was referring to high salaries in general across a number of sectors.

Binky,

And I would argue, in general, that high salaries are poorly aligned with the jobs and sectors that produce real long term economic success. They are often a self serving and self perpetuating club.

I think it's split tbh

@larrygrylls

I am curious as to why the OP feels she is worth, on average, 300k/annum.

What metric is she using?

Making returns for her stockholders? I don’t think so, as the finance sector has yielded zero share price growth since the 90s, despite a massive bail out from the tax payer in 2008.

Contribution to the community? Has she helped more than a dedicated doctor or nurse or social worker?

Pay for her unique skills and expertise? Is she brighter and more expert than some of the top academics and scientists?

Or is she just comparing herself to others in the same overvalued (by some) gilded sector? I suspect that this is the correct answer.

It's not the OP who thinks she is worth it

It's her employer

Who are you to say why someone gets paid x amount. They clearly are worth it as otherwise they wouldn't command that kind of salary

Dwiz,

Read the thread (or at leat the OP’s posts.

She explicitly stated that she ‘wanted to be paid for what she put in’.

@larrygrylls

Dwiz,

Read the thread (or at leat the OP’s posts.

She explicitly stated that she ‘wanted to be paid for what she put in’.

Doesn't everyone want to be paid for the work they put in?

Her work have said she is worth x amount for her job

She has done the job and thus should be paid for the work she has put in. Many on here seem to see the word bonus and think discretionary which is it, but in many roles and industries bonuses are all but guaranteed to some level

No... I'm not. My bonus is £200 at Christmas.

I'm sure you'll be fine on your massive base salary and savings.

Dwiz,

You just cannot accept being plain wrong.

A discretionary bonus is discretionary. Many employees have taken their employers to court over discretionary bonuses actually being contractual, very few have won. The entire point if a discretionary bonus is the company is not committed to pay it and, in hard times, it won’t.

And someone once exchanged their house for a tulip bulb. Who am I to say that is not a fair exchange? However, I have a pretty strong opinion on the matter...

@dwiz8 many people aren't paid enough for what they put in. NHS staff, teachers, carers. Arguably more valuable jobs. OP isn't unique in that respect. A bonus isn't and should never be taken as a guarantee.

I would really appreciate a high earner section on Mumsnet...

@larrygrylls

Longpause,

There are many types of wealth management companies with a wide variety of fee structures.

You need to spend some time doing research and decide how much you want to pay for what level of advice.

The reason the finance industry pays so well is that, on average, it fleeces its customers. There are honourable exceptions, though.

It is also perfectly possible to manage your own money. It is not as hard as most think.

Thank you @larrygrylls I have been shopping around a bit and I'm being very cautious about who I go with - so many horror stories!

Personally still earn full salary, but possible no increase, bonuses and shares this year and next few maybe?

This is the bit I find particularly crass and shows a spectacular lack of understanding of the problems a huge number of people are facing.

i'm senior academic at a university and I count myself very lucky that i'm not being made to take a pay cut ( other universities have imposed a 20% pay cut for senior staff)

I don't earn a huge amount (especially when you consider the qualifications i have and how hard I work) , i've never had a bonus and we don't really get pay rises above the incremental pay points.

However, i know i'm lucky and wouldn't dream of moaning about my situation when I can see people losing their jobs and know how scared they are for the future.

@Iprobap

coco actually I could live with about 50% less of guaranteed pay. We own our house outright. I drive an 8 year-old VW Polo. I am unsettled by losing what I am used to getting, especially given workplace expectations are higher than before.

I had plans, which will be slowed down by this.

Oh diddums

What was that? An upgrade to the yacht?

Get a grip of yourself. No mortgage, 1/4 million salary, and feeling you’re hard done by

I bet your job is one of these stupid “management consultant” type things with ridiculously over inflated salaries that are completely unwarranted for the kind of work it is

@user1471500037

I would really appreciate a high earner section on Mumsnet...

Why? I am a high earner but have the same issues as other parents.

I would imagine everything you may need from a high earner board is more than covered on other forum based websites

Long pause,

Look at both upfront and continuing fees. And, in addition, look at the fees of the funds they choose to invest in.

Some look cheap but get money from large backhanders for investing in expensive funds.

Look to pay a maximum of 1.5% per annum all inclusive (upfronts amortised, their fees and fund running fees). If the amount you are investing is substantial, it should be sub 1%.

High fees and churning (buying and selling frequently) will destroy investment returns.

Long pause

The finance industry wraps itself in jargon it really helps to learn to decode it.
The key thing before speaking to any financial advisor is to know your goals and risk tolerance.
Very few people consistently get above market returns and even rainmakers can fall flat on their face (Neil Woodford being a recent example). So if someone is guaranteeing above market returns be very wary.
MSE and the OU have produced a course (it may be a bit basic for you) that might be jumping off point for learning more about investing.
The more you know the easier it will be for you to assess the quality of advice you are getting.

@ChazsBrilliantAttitude

Could you link to that course please Chaz? It sounds a great introduction to finance. Also do you know of a glossary of terms to check as you suggested? A rainmaker???!!!

Thank you both @larrygrylls and @ChazsBrilliantAttitude I appreciate the advice. I know nothing about investing past asking someone to do it for me. That OU course might be just what I need.

Here you go
www.open.edu/openlearn/money-business/mses-academy-money/content-section-overview?active-tab=description-tab

A rainmaker is someone who brings in business / income streams etc.

Investopedia is has a good dictionary but is US focussed.

www.investopedia.com/financial-term-dictionary-4769738

[quote Waxonwaxoff0]@dwiz8 many people aren't paid enough for what they put in. NHS staff, teachers, carers. Arguably more valuable jobs. OP isn't unique in that respect. A bonus isn't and should never be taken as a guarantee.[/quote]
Still missing the point that in many industries and roles bonuses are almost guaranteed

Take CEOs and high performing traders for example their salary is bulked out with bonuses which they near enough can guarantee to some extent.

It doesn't matter if some people aren't paid what you think they're worth (a job is only worth what someone is willing to pay for it mind) the Op is clearly worth her salary as she has been paid it for some time, her company feels she is worth x amount.

@larrygrylls

Dwiz,

You just cannot accept being plain wrong.

A discretionary bonus is discretionary. Many employees have taken their employers to court over discretionary bonuses actually being contractual, very few have won. The entire point if a discretionary bonus is the company is not committed to pay it and, in hard times, it won’t.

And someone once exchanged their house for a tulip bulb. Who am I to say that is not a fair exchange? However, I have a pretty strong opinion on the matter...

Where have I said a bonus isn't discretionary?

Of course it is and it's not contractual for that very reason. However in many roles it's as good as guaranteed. Take CEOs, city traders. A large chunk of their salary is 'bonus' based and they nearly always receive most of it as it contributes as part of their salary.

The CEO of Disney, his current salary is $3million however with a $65million bonus. With that kind of split of course he doesn't live based on a 3mil salary, most of his bonus if not all is almost guaranteed.

@Trinketsfor20

Also a couple of things for everyone to note -

1. First of all, OP, welcome to Mumsnet - please, everyone, do take note that the OP has joined this website to make this post, so let us all bear this is in mind and extend for the OP a warm welcome for their very first post.

1. Secondly - there is off chance that the OP is actually struggling, massively financially and/or otherwise - for some people such things work as escapism (people post all sorts online for all reasons) in which case we should possibly wish them the very best.

Just also writing to MNHQ so that they can also warmly welcome OP to MN

I change my posting name every week.

I'm sure you'll be ok 😂

I think there's an interesting cultural phenomenon going on here. In America, you're congratulated if you're a high earner, and asked what you did to earn it. In the UK, you get pulled down and told to 'remember your place'. I have a friend who emigrated to Texas for just this reason, now runs a very successful business.