It sounds like this is far, far from a profit-sharing scenario like most companies have which is based on performance through the end of their fiscal year. This sounds more like specific expectations were given and at the very last minute just sort of fell apart. Pretty clear that they didn't know about it until now.I guess what in people's minds would have been a more fair bonus structure in this case? I mean the profit you're dishing out is the profit, you can't really just will more of it into existence. Is the thinking that they should have changed the comp structure to be more than 40% to employees once projections weren't met? Maybe, I could see that argument. If you want your percentage to slide like that though then really what you want to do is negotiate a flat bonus or a floor.
They could have gone harder on the leaning into profitability over what ever they spent money on, but cost-cutting typically has it's own set of problems that are negative to employees...
I think this really sucks for the employees but it's just... standard risk in this type of compensation structure so it's not in it's face utter travesty like crunch and other problems we hear from the industry. This will happen in ANY company with profit-sharing if they miss profitability forecasts
If they were promised 40% of profits, they got 40% of profits, and they will continue to get 40% of future profits, theyre getting exactly what they were promised...you know it's definitely wrong to tell employees one thing and do the other. Maybe it's corona virus related and the company has to get a little lean for a bit, even if that's the case you state to your employees that they will get the compensation somehow but it will be at a later date. I mean give them some peace of mind or confirmation that they will still get full compensation.
Pitchford also told Gearbox developers that if they weren't happy with the royalty system, they were welcome to quit, according to those who were in the meeting.
Pitchford also told Gearbox developers that if they weren't happy with the royalty system, they were welcome to quit, according to those who were in the meeting.
The problem was continuously been misled into believing higher bonuses. This quote stands out the most.If they were promised 40% of profits, they got 40% of profits, and they will continue to get 40% of future profits, theyre getting exactly what they were promised...
Idk I hate that I feel like I'm defending gearbox here. We just need to address the actual issue detailed here if we think it's a problem. We sure probably can assume that management wasn't trying to make LESS profit for their own bonuses though to screw over the employees. If something comes out showing that management did something sneaky here to bury profit, then yeah they're shitheads. But it doesn't really look like it?
They gave this information after the game launched. Expenses would have been known prior to the game launching. The company was underpaying market value and the only motivation was the bonuses. The knew exactly what they were doing. There wouldn't have been any doubt employees potentially finding work elsewhere had they been notified in advance about the bonus profit situation especially since they're being currently undervalued. Employees now face two choices, they stick around for a company which basically misled them on bonuses first time around or they quit in a current climate where things are shut down and don't receive future bonuses after years of work.Then, in a meeting yesterday, Gearbox boss Randy Pitchford told employees that Borderlands 3 bonus checks would be significantly lower than they hoped, according to three people who were present. He said the game had been more expensive than expected, the company had grown significantly larger than it had been in the past
The whole staff should sue the company into utter oblivion, leaving Pitchford alone, penniless and only his stupid fucking shirts to keep him company.
I knew before I clicked on this thread that this was going to be Pitchford's fault.
Which is potentially always true for any boycott of a company of more than 1 person.Well if people hadn't bought the game, the team would have received even less, or no bonus at all. So that part is certainly true.
Which is potentially always true for any boycott of a company of more than 1 person.
But number seems to show that between other employes and Randy, one person seems to benefit more than the other from keeping the status quo.
Is there any reason the people at Gearbox can't simply leave and make their own studio? There's clearly competent people there at multiple levels. Unless it's a situation where the studio has a lot of turnover.
All good and fair points. I don't know what the rights situation are with Borderlands but maybe 2K has the resources to support such an effort. Borderlands is a marque brand for 2K and perhaps this is an opportunity for them to take advantage of this situation.Sure, they could, just as any collective of talent at any dev could do this. The barrier is always capital though. Leaving Gearbox, or any role, is leaving a wage. If you're going to jump ship as a collective with intent of starting up solo you're also going to need a project fast, someone to pay those wages, or an enormous amount of capital to offset the loss of unpaid time to work on pitches.
I'm sure a lot of devs around the world would love nothing more than to leave their conditions and band together, but deterred due to the high risk / high monetary loss of doing so.
If they were promised 40% of profits, they got 40% of profits, and they will continue to get 40% of future profits, theyre getting exactly what they were promised...
Idk I hate that I feel like I'm defending gearbox here. We just need to address the actual issue detailed here if we think it's a problem. We sure probably can assume that management wasn't trying to make LESS profit for their own bonuses though to screw over the employees. If something comes out showing that management did something sneaky here to bury profit, then yeah they're shitheads. But it doesn't really look like it?
I think he would have been ousted a long time ago but Gearbox is privately owned. So he either has a majority stake in the company and/or he makes the other shareholders happy enough.Can they not get rid of this guy? It's not like he owns 2K or Gearbox right? I get that it can be hard to get rid of people at or near the top.
I've got to think it's easier than getting rid of our own presidential problem but maybe I don't know how it all works.
Can they not get rid of this guy? It's not like he owns 2K or Gearbox right? I get that it can be hard to get rid of people at or near the top.
I've got to think it's easier than getting rid of our own presidential problem but maybe I don't know how it all works.
It's Randy pitchford so that means that they are shitheads. You don't have to give them the benefit of the doubt when they certainly haven't earned it.If they were promised 40% of profits, they got 40% of profits, and they will continue to get 40% of future profits, theyre getting exactly what they were promised...
Idk I hate that I feel like I'm defending gearbox here. We just need to address the actual issue detailed here if we think it's a problem. We sure probably can assume that management wasn't trying to make LESS profit for their own bonuses though to screw over the employees. If something comes out showing that management did something sneaky here to bury profit, then yeah they're shitheads. But it doesn't really look like it?
I believe Randy is not only one of the co-founders of the company, but CEO as well. Gearbox is also a private company which means he more than likely isn't going anywhere given the success they've had.Can they not get rid of this guy? It's not like he owns 2K or Gearbox right? I get that it can be hard to get rid of people at or near the top.
I've got to think it's easier than getting rid of our own presidential problem but maybe I don't know how it all works.
He has ownership share of Gearbox iirc.I think he would have been ousted a long time ago but Gearbox is privately owned. So he either has a majority stake in the company and/or he makes the other shareholders happy enough.
Seems to be the latter. The numbers have come back from 2K and the profits are far lower than projected, so the initial bonuses are far lower than projected.So is it that Gearbox isn't disbursing 40% of its income from the game to employees, or is their income just less than anticipated?
Right, which would make this more a case of mismanagement than deceit (depending on when Pitchford knew their returns would be significantly below projections).Seems to be the latter. The numbers have come back from 2K and the profits are far lower than projected, so the initial bonuses are far lower than projected.
People are reading this as they are withholding the money but that isn't the case. There is just way less than expected to go around.
I work in the tech industry. Readers need to understand that these bonuses were not pie in the sky promises, they are contracted and written. There just isn't as much money in the 40% at this time to give out the huge payouts everyone was thinking would be there coming off of BL2.
It isn't a robbery. If they were stealing the money they'd be liable for suit because the revenue sharing is set in contract.
I personally just got handed papers a couple of days ago that our future bonus payouts would be far less than they have been, because of the uncertainty of the coming times, and it was a ""sign it or quit" situation. But it's written out in clear language every time what the percentages of the payouts will be.
Seems to be the latter. The numbers have come back from 2K and the profits are far lower than projected, so the initial bonuses are far lower than projected.
People are reading this as they are withholding the money but that isn't the case. There is just way less than expected to go around.
I work in the tech industry. Readers need to understand that these bonuses were not pie in the sky promises, they are contracted and written. There just isn't as much money in the 40% at this time to give out the huge payouts everyone was thinking would be there coming off of BL2.
It isn't a robbery. If they were stealing the money they'd be liable for suit because the revenue sharing is set in contract.
I personally just got handed papers a couple of days ago that our future bonus payouts would be far less than they have been, because of the uncertainty of the coming times, and it was a ""sign it or quit" situation. But it's written out in clear language every time what the percentages of the payouts will be.
Right, which would make this more a case of mismanagement than deceit (depending on when Pitchford knew their returns would be significantly below projections).
Well he certainly knew what the expenses were in advance, it's the sales and ancillary revenue that could have fallen short of predictions.Still if the lower payouts are due to higher expenses that is something upper management has known about for a long time yet they have presumably acted (read deceived) as if everything had gone as planned up until now. Likely with the intention to retain as much of the staff as possible until the project was done. It would be a different story if was due to lower than projected sales, but that isn't the case here. Plus his response basically telling them to get them to fucked if they don't like it shows just little he cares. Nothing illegal, but very questionable ethics.
It's absolutely deceit. He didn't just find out expenses were much higher than planned. If he did he has no clue what is going on with his own company. He may be a slimeball, but he isn't incompetent.
Well he certainly knew what the expenses were in advance, it's the sales and ancillary revenue that could have fallen short of predictions.
Which is why I said "depending on when he knew."