I wanted to ask fellow consultants and managers what their thoughts are on the following.I have been with my company for 6 years and was here when it was formed working my way up to manager. There are the two directors and myself that run the company and the other employees are consultants and support staff. One of the senior consultants who has been here 2 years has done very well and bills very highly but mainly off the back of one client. As a manager who has been instrumental in the growth of the business and training of every other staff member, how should I react to his earnings surpassing mine.Basic salary wise I am on more, and I get a cut of the team fees as commission. However with the level his fees are currently at he earns more by quite a bit. Is this quite a normal situation between managers and high performing consultants or should I raise it with my directors? Any opinions welcomed. Thanks.

You're the boss, right? Do you feel that he is fairly remunerated? If not, then change it... but also be aware that, if you make the wrong decision, he might leave...

[quote]You're the boss, right? Do you feel that he is fairly remunerated? If not, then change it... but also be aware that, if you make the wrong decision, he might leave...[/quote]I am the direct office boss, but I don't control pay. I probably have 20% of the decision when it comes to pay, the other 80% split between the directors.The issue is as you imply, it's almost impossible to bring his pay down as he will be demoralised. Therefore the directors could only increase mine. What I am trying to establish is whether this situation is common because I imagine that with more direct influence over commission consultants may often overtake managers earnings.

The idea is to have a commission scheme where you BOTH want him to be doing well.So for instance, he brings in a fortune, he gets paid a small fortune, and you get bumper profits for the year.You should WANT him to be doing well... I for one would gladly see the juniors each earning an extra £10,000 in commission if it meant that my own profit share could go up by even just a measly £1,000...If however he is earning a fortune in commission which is not representative of his real contribution to the company (for instance, he is sponging off an easy account and is getting big commission despite doing nothing that anyone else in the company could just as easily do), then the commission scheme is flawed and you should raise it with the directors.As a company owner, you need to stop "competing" with staff. Yes you should be earning more than them, but you shouldn't think of yourself as an employee any more. If you think he's over-paid for what he does, raise the issue with your fellow directors.

[quote]The idea is to have a commission scheme where you BOTH want him to be doing well.So for instance, he brings in a fortune, he gets paid a small fortune, and you get bumper profits for the year.You should WANT him to be doing well... I for one would gladly see the juniors each earning an extra £10,000 in commission if it meant that my own profit share could go up by even just a measly £1,000...If however he is earning a fortune in commission which is not representative of his real contribution to the company (for instance, he is sponging off an easy account and is getting big commission despite doing nothing that anyone else in the company could just as easily do), then the commission scheme is flawed and you should raise it with the directors.As a company owner, you need to stop "competing" with staff. Yes you should be earning more than them, but you shouldn't think of yourself as an employee any more. If you think he's over-paid for what he does, raise the issue with your fellow directors. [/quote]Just to clarify slightly. I am a member of staff, albeit the most senior member but still an employee. I am a very small shareholder but it's more of a token gesture.You hit the nail on the head re the competing comment. I know I could run his section and achieve his results, but in my role I am 60% manager and run a small recruitment desk which therefore encourages me to compete, however commission wise there is no comparison. He did bring in the client but it's very easy account managing now bringing him in massive fees.It's a combination really. I don't think he deserves quite as much and I want to as manager be completely behind my team, but I have given a lot to this company through the recession essentially keeping it afloat and feel that my earnings should be higher than his no matter what he brings in.Do you or anyone else have examples of consultants earning more than their managers?

Hmm, tricky. I get it. You're being treated like a company owner when it comes to remuneration but like an employee when it comes to decision-making and authority. Tricky one.Yes, I think you should raise the issue with the other directors. Just tell them you think he's getting way too much commission on that account and see what they say. If they don't pick up on what you're saying (deliberately or otherwise), then they're not standing shoulder-to-shoulder with you and you owe them no loyalty.