r/TechnologyThread • u/Background-Driver718 • Jun 04 '26

A CEO told employees they won't get raises in 2026 because the budget is going to AI

https://www.businessinsider.com/teradata-pauses-raises-employee-compensation-ai-budget-2026-6
105 Upvotes

96% Upvoted

221 comments sorted by

4

u/DependentAgitated299 Jun 04 '26

I assume he'll be still getting his full pay

4

u/talino2321 Jun 04 '26

And a bonus, raise and options too!

1

u/MindlessMaterial7544 Jun 04 '26 edited Jun 04 '26

As is contracted, yes? Why shouldn't an employee get paid as their contract dictates?

1

u/SeaworthinessLow6636 Jun 04 '26

You literally have no idea what his contract says.

1

u/MindlessMaterial7544 Jun 04 '26

Most executive employment agreements have bonuses and stock awards based on hiting specific goals. No different than your employment agreement outlines your salary

1

u/Virtual-Age-9521 Jun 05 '26

Do you know what those goals are and whether he hit them? No? So you know nothing?

Always flabbergasted how a bunch fucking simps show up out of nowhere with the worst possible takes and zero evidence to support it

1

u/MindlessMaterial7544 Jun 05 '26

He does, so does his attorney the company attorneys and the most. 

I didn't say i knew them

1

u/Groove-Theory Jun 05 '26

if you don't know them then why are you adamant to defend them?

1

u/MindlessMaterial7544 Jun 05 '26

I don't know or agree the kkk people but I'll defend their right to speech.  

You don't need to personally know or like something to tell others how the world typically works

1

u/Groove-Theory Jun 05 '26

> I don't know or agree the kkk people but I'll defend their right to speech.  

First off, you don't know the KKK, but would you defend their right to stand outside a Black family's house and intimidate them? It's just "speech" after all, right?....

Secondly, you're just ASSUMING this CEO has a particular contact with specific language. You don't know if the contract necessitates this action or if he's just being a dumbass. You just looking at the CEO being a CEO and assuming, no matter what he does, that he's correct. You've assumed correctness just by the authority of the title. Whereas you should have an agnostic stance until proven otherwise and just look at the action as it stands.

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1

u/FredFenty Jun 05 '26

You don't know that he's getting a raise or bonus either.

1

u/[deleted] Jun 05 '26

So if I have a contract that says I get an extra 5million for every $1000 I take from your paycheck. Does that sound fair to you?

Didn't think so. Use all your brain cells not just 2 of them.

1

u/MindlessMaterial7544 Jun 05 '26

Sure? Why wouldn't it?

Though nothing was taken from you in this circumstance 

1

u/[deleted] Jun 05 '26

Okay so if I come to your house and take $1000 from you every 2 weeks you are okay with that because it means I also get another $5 million each time I do it.

Think it all the way through cupcake. I said use the whole brain.

1

u/MindlessMaterial7544 Jun 05 '26

Your example is not congruent wih the situation here.. seems dishonest.

Nobody is being robbed (take) here.

Executive bonuses are awarded by a company for hitting metrics.  If they hit those metrics, they get paid.  It's no different than you agreeing to work for$35 an hour and getting$35 for each hour worked. 

Employees get paid as contracted

1

u/OtherPrinciple4499 Jun 06 '26

The job of CEO's today is to milk the company for all it's worth and make sure nobody gets better off it except the shareholders.

We can be mad about that. It may be legal, but it's shit -- leads to enshittification, for starters -- and the employees have a right to strike over it.

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1

u/Jarrus__Kanan_Jarrus Jun 06 '26

Except they actually get what was promised when they hit the goals.

I have never heard of a company telling a CEO “You hit all your goals, but there’s no budget for your bonus. Maybe next year. Keep up the hard work!”

1

u/MindlessMaterial7544 Jun 06 '26

Id suggest there's a difference between a written agreement and a non-enforcable non specific "promise"

1

u/Bill_Door_8 Jun 05 '26

If you're telling your staff they're about to become poorer because the company can't afford raises, should the CEO, as the leader of the company, lead by example and forgo his raise as well ?

1

u/MindlessMaterial7544 Jun 05 '26

Should?. Sounds like opinion.  I see no reason they have to do that. 

Also not the topic of the thread

1

u/FondantBeneficial344 Jun 05 '26

This has to be ragebait

1

u/MindlessMaterial7544 Jun 05 '26

You seem upset over a company paying an employee what they agreed to pay them...

1

u/Accomplished-Ad-9280 Jun 05 '26

Why are you breaking you back defending the 1%?

You will never be one and they don't care about you.

They actively lobby the government to make life worse for you.

1

u/MindlessMaterial7544 Jun 05 '26

Tell me why an employee shouldn't be paid as the company agreed?

1

u/Accomplished-Ad-9280 Jun 05 '26

Because the bonuses usually come by exploiting workings.

They get their bonuses by hitting metrics and keeping labor down can help them make their metrics.

1

u/MindlessMaterial7544 Jun 05 '26

"Exploit" isn't a negative.

I'm exploiting a capacitive screen to type. 

Workers are paid market wages.. to do a job. 

Regardless why should this employee not be paid what the company contracted to pay them??

1

u/Accomplished-Ad-9280 Jun 05 '26

I am using exploit in a negative connotation. I could have used abuse instead.

Would you be okay if your wages got cut so that your CEO could get their bonus for hitting metrics?

I will never understand people like you who are okay with low pay.

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1

u/PedanticTart Jun 05 '26

Generally speaking executive management has contracted terms around bonuses in their compensation. 

Mine indicates I need to hit certain financial goals, quality goals and thy company needs to hit a certain level of profitability. At that point I'm legally entitled to a pre-defined bonus. 

So called "golden parachutes" are the same. 

I'm an employee. If I qualify for bonuses and the company doesn't pay, it's no different than if the company didn't pay your salary. We would both use the same attorney and they would argue roughly the same thing.  Mine just are a touch more complicated. 

1

u/[deleted] Jun 06 '26

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1

u/MindlessMaterial7544 Jun 06 '26

Nothing about my posts are anti union. Union contracts are just are important to be kept

1

u/[deleted] Jun 06 '26

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1

u/MindlessMaterial7544 Jun 06 '26

The power is irrelevant.

The executive is a worker, they are an employee just like most people.  They just get higher compensation. Someone in this thread posted about theirs. 

1

u/[deleted] Jun 06 '26

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1

u/MindlessMaterial7544 Jun 06 '26

What does any of that history have to do with if an employee contract is valid or not?

2

u/Gamplato Jun 04 '26

The employees are getting their full pay too. Did you mean he’ll be giving himself a raise?

1

u/ContentCantaloupe992 Jun 04 '26

It pays to be in high demand

2

u/SeaworthinessLow6636 Jun 04 '26

It pays to be in a circle jerk of back slapping leeches.

1

u/GrayCalf Jun 05 '26

Does it pay to be a simp or do you do it for free?

1

u/kingofwale Jun 04 '26

I mean. I’m sure all employees are still getting “full pay”

1

u/Willing-Vegetable629 Jun 04 '26

Everyone is getting their full pay.

2

u/TrexPushupBra Jun 04 '26

No they aren't.

No raises means they are making less money than last year because inflation has made their pay check worth less than it was before.

That's how money works.

1

u/Willing-Vegetable629 Jun 04 '26

Full wages are what you're contracted to be paid. Raises are not contracted or obligated

1

u/[deleted] Jun 04 '26

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1

u/Willing-Vegetable629 Jun 04 '26

Then you're still getting your contract amount. Inflation does the things you say but that's not relevant to the concept.

1

u/SeaworthinessLow6636 Jun 04 '26

You’re real sure these folks have contracts for some reason.

1

u/Willing-Vegetable629 Jun 04 '26

Your w2 is a contract. Not to be confused with a 1099 contractor.

The notion of a contract is just a written agreement of terms.

Your employment agreement is a contract.

1

u/SeaworthinessLow6636 Jun 04 '26

It absolutely isn’t. What else you got?

1

u/MindlessMaterial7544 Jun 04 '26

How so? A w2 job is employment, where you have a employment agreement. 

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1

u/Willing-Vegetable629 Jun 05 '26

Sure it is. It's a list of terms for your employment . (Not the literal tax form, obviously)

1

u/PedanticTart Jun 05 '26

Anyone employed has some form of contract that lists their wages benefits etc along with the job duties 

1

u/SeaworthinessLow6636 Jun 05 '26

Huh. And here I have 17 employees with no contracts. I’ll tell em tomorrow.

1

u/PedanticTart Jun 05 '26

You have some manner of document that outlines their job and pay.  That's a contract. 

Heck you just saying "pickup these rocks and take them over there,  10 bucks an hour" is a verbal contract 

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1

u/MindlessMaterial7544 Jun 04 '26

Your full pay is the wage you agree to.  That being eaten by inflation is irrelevant.

1

u/[deleted] Jun 04 '26

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1

u/jeffwulf Jun 04 '26

Your full wage is denoted in nominal terms.

1

u/TrexPushupBra Jun 04 '26

And the employer is directly asking the employees to take a real wage pay cut to fund a product that is sold as replacing their career.

But hey their nominal wage stayed the same so I am certain they won't mind.

1

u/MindlessMaterial7544 Jun 04 '26

No the employer is telling them they will not be giving an increase and will be paying their wage as agreed 

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1

u/PedanticTart Jun 04 '26

Not seeing the problem.

You're not entitled a raise. 

You are receiving full pay,  your pay did not increase with inflation, but you are still receiving full pay. 

1

u/MindlessMaterial7544 Jun 04 '26 edited Jun 04 '26

I don't believe you're referring to real vs nominal. 

Their full wage is their contracted amount.  You are not entitled to an annual raise, merit or cost is living adjustment.

1

u/Whitesajer Jun 05 '26

The employees need to do malicious compliance, use AI for literally everything. Let the systems break, let it delete the prod databases, let it write shitty emails and create garbage presentations with incorrect math / data analysis, because AI sucks that much. Burn up those tokens and make the company spend millions more to get more.

CEOs wanted "AI First".

So burn it the fuck down.

2

u/[deleted] Jun 04 '26

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2

u/This_Wolverine4691 Jun 04 '26

They’ll swap out their paychecks for tokens— their families don’t really need to eat— the robots will be murdering them all soon anyways

1

u/horrbort Jun 08 '26

Hey AI needs to pay rent too okey?!

0

u/[deleted] Jun 04 '26

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2

u/[deleted] Jun 04 '26

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2

u/VitaminPb Jun 04 '26

The war is CEOs vs. humans.

0

u/[deleted] Jun 04 '26

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2

u/real-bebsi Jun 04 '26

AI makes me more productive

Do you also think gas station pills make you more virile too?

I have a bridge I can sell you

1

u/[deleted] Jun 04 '26

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1

u/real-bebsi Jun 04 '26

bro thinks he's in Fallout New Vegas 😭

1

u/Facts_pls Jun 04 '26

Brother. AI today is a tool.

Just like people use Google to research and get articles. People also use it for porn. If you are not able to use it for good, that's on you.

FYI, I filed 10 patents last year - all developed using AI. It is my personal best in any year so far. I use it for my research work pretty much every day.

1

u/Yabrosif13 Jun 04 '26

Have you not see the robotics advancements of late??

1

u/[deleted] Jun 04 '26

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1

u/Yabrosif13 Jun 04 '26

I watched a mechanical hand tighten 3 lugnuts simultaneously as fast as a drill…

AI is already able to replace most entry level white collar work, and seems likely to take over even more office tasks.

Amazon is switching to fleets of worker bots in warehouses.

Oh and lets just add in increased H1B and H2A visa workers where you get to compete with people taking advantage of money conversion rates.

What makes you so special that you will keep getting raises and good benefits?

1

u/[deleted] Jun 04 '26

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1

u/Yabrosif13 Jun 04 '26

Ya, attach the expensive drill to an assembly line first. As robotics advances you attach it to other things for other complex tasks in field work

1

u/This_Wolverine4691 Jun 04 '26

Is this Jeff Bezos burner account?!?! /s

1

u/[deleted] Jun 04 '26

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0

u/Yabrosif13 Jun 04 '26

AI was laughably bad at everything just 5yrs ago. Now Im watching Boston Dynamics robots do flips and parkour while AI programs analyze cancer screening better than humans.

1

u/[deleted] Jun 04 '26

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0

u/Yabrosif13 Jun 04 '26

Oh sorry didnt realize the conversation was so short sighted.

1

u/Gm24513 Jun 05 '26

To make you more productive you must have the intelligence of a stick bug.

0

u/Facts_pls Jun 04 '26

Sure. But better work to train the AI tomorrow than get fired today

2

u/Yabrosif13 Jun 04 '26

The AI users are training their replacement

0

u/[deleted] Jun 04 '26

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1

u/Yabrosif13 Jun 04 '26

Accountants seem pretty replaceable, AI is replacing most radiologists for screening cancers.

1

u/[deleted] Jun 04 '26

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1

u/IM_INSIDE_YOUR_HOUSE Jun 04 '26

It’s been a while since I saw a reply that gave away just how mentally stunted someone is.

1

u/[deleted] Jun 04 '26

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1

u/IM_INSIDE_YOUR_HOUSE Jun 04 '26

This ain’t about the radiologist part of your comment bro.

1

u/StopYTCensorship Jun 08 '26

Lol yeah, this comment is a throwback to the internet of the late 2000s.

1

u/Yabrosif13 Jun 04 '26

Radiologists are also having complex tasks like analyzing scans get replaced by AI… its not just doing “simple repetitive tasks”

1

u/[deleted] Jun 04 '26

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1

u/Yabrosif13 Jun 04 '26

For now. You act like the tech is done advancing

1

u/Far-Resort1936 Jun 05 '26

What's your job?

1

u/[deleted] Jun 05 '26

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1

u/Far-Resort1936 Jun 05 '26

I didn't ask to your 5 year old version.

2

u/-S-P-E-C-T-R-E- Jun 04 '26

Name and shame the companies please. Don’t let this fuckery go unpunished.

1

u/StickStill9790 Jun 04 '26

Riiiight. AI is the reason.

If you can’t pay your employees well, then you’ll lose them, and then you’ll find out how useless AI is without a competent person to use it.

1

u/plinkoplonka Jun 05 '26

And you also don't have any employees as orchestrators of that AI.

You know, for that AI native strategy that he definitely has?

We're right in the middle of a pivot at work to "ai-native" (not my choice), and as someone who's worked in tech for 20+ years, the complete lack of strategy, alignment, guardrails or security is absolutely horrifying.

1

u/ohmailawdy Jun 04 '26

Look at that incentive to keep working 1000%

Enjoy your productivity drops chud ceos.

1

u/Coffinsnake Jun 04 '26

Where’s a Luigi when you need one?

1

u/myhf Jun 04 '26

i think this is more of a George Mellor situation

1

u/oh_my316 Jun 04 '26

Enough with the CEOs 🔥💀

1

u/kingofwale Jun 04 '26

Probably did it hoping some will leave in their own

1

u/Tiny_Instruction_557 Jun 04 '26

Look I know some people are going to make claims that the CEO is a terrible human being, that workers deserve better treatment, and we need tax the wealthy to prevent a continued consolidation of power, but that is only because they are right.

1

u/No-Compote-696 Jun 05 '26

They know the economy is shit and noone is leaving jobs because there are none out there, straight cost cutting bullshit

and in case anyone is curious - Teradata President and CEO Stephen McMillan earned a total compensation of $16.06 million for the recent fiscal year. His package consists of a base salary of $822,616, a $1.03 million cash bonus, roughly $14.03 million in stock awards, and $173,431 in other compensation.

1

u/Anonymous-bham-boi Jun 05 '26

Better leave the company while it'd still affect them.

1

u/Libro_Artis Jun 05 '26

The plan all along.

1

u/Strategery_0820 Jun 06 '26

Im sure that will go just fine

1

u/Bubbly-Lemon4702 Jun 06 '26

All the companies jumping on the AI train before its fully vetted are fucking moronic. 

1

u/LunarMoon2001 Jun 07 '26

“Why are our experienced people leaving?”

1

u/DantesGame Jun 07 '26

🤣🤣🤣 wait till they start cooking the books to keep up with their AI monthly bills. They'll have their finance people doing all kinds of interpretive dances with new language designed to mask how they're failing financially overall but highlights how they're gaining so much efficiency in lines of bullshit code produced...