How does folks getting exceed get more in bonus compared to meets or im or ni? Who balances the bonus pool?
Can someone explain this in easy to follow language?
What happens to the bonus pool if 10% left and weren’t refilled?
What happens if 10% of the ppl were laid off last year?
Meets get 95-100% of last yrs bonus. Been that way for a while. Exceeds used to get 15-20% more but now it takes consistently exceeds for that high (where CE used to pay 40-50% premium). Now exceeds pays 5-10% premium. Is it worth it for the extra work you need to do to get an exceeds? Many say no it’s not.
the bonus pool does NOT include the $$ for anyone who left or was displaced during the year. it is the sum total of the $$ from prior year, for those who are on staff as of when the comp process starts (late oct/early nov). That total may be adjusted up or down depending on results of that particular group.
The manager is given the pool # and told to allocate up to that amount, but not a penny more. The manager then allocates the pool according to guidance - which says, give high performers more than last year and poor performers less, Meets will get flat-ish (sometimes up or down a little bit).
This goes through multiple layers of review - all the way up to the OC level. at any point in that review change, the manager may receive feedback that changes their initial allocation.
While we do the hypotheticals and we’re on a will something into the universe adventure. Just remember - expect nothing and be happy with anything over -0-. You’ll be better for it.
Should you be on the path that share buybacks enrich the top, then get into the ESOP. While you’re cut and dividends and share price appreciation, well you’re on the same dang ship.
Stay the course, look, listen, execute.
Hopefully there will be option to dispute this bonus.., I’ve been with the company 23 years and received a do no meets on mid year,,,, meanwhile all the new young employees are receiving this bonus… I guess the union will be my only option
Used to be in CTO, told to go away 10/01. 60 day ended 11/29. Mid year was meets. Will I get a pro-rated bonus?
The bonus pool is finalized based on the population that is around as of 10/1. So for example, if you had 10% of the population laid off, but on their severance period as of 9/30, then their salary is not factored into the bonus pool. There is a whole forecasting/planning process done between the compensation team and Finance team throughout the year where comp reports what bonuses were from prior year, differences in salary in each area each quarter, etc. Finance takes those #'s to plan for what the current years' bonus pool will be, which is set then as of 10/1. If you get an increase in your rating from prior year to this year, theoretically, you should get an increase in the bonus you received last year, based on the guidance provided to managers (which you can find in TeamWorks by searching for compensation/bonus guidance for managers). I say theoretically because it literally all depends on the budget that was set. If it goes down from last year, you may not get an increase. Say, for example, the bonus budget is down by 15% from prior year, but you received an improved rating from prior year. It's very possible your bonus will remain the same as prior year or possibly even go down......or just go up slightly. Honestly, just remember that your bonus for current year is baselined as your prior years' bonus. From there, other factors are considered in to guidance provided to managers such as the budget amount, whether you were promoted during the year or not, whether you had an improved rating from prior year or not, whether you were less than meets on risk overlay, etc. And also know that managers apply discretion so there's no "secret sauce". Perhaps manager guidance says if all stays the same except your rating (an increase from last year), then they can give you between 10-20% increase from last years' bonus. They don't HAVE to give you that. because maybe there are others in the broader team (not just yours, but within your org that the budget was set for) that did better than you or who also increased ratings, so they don't have enough to give everyone who qualifies that much - that's just the guidance. Mostly, the "out of guidance" is for those who are trying to give TOO MUCH to someone based on their risk overlay or performance rating, not those that are giving too little. All of this to say, it's a cr-p shoot, really.
It does not make huge different, but you may get 3-5% increase on top of your bonus from previous years.
There’s very little differentiation in bonus between meet and exceeds.
It's all in this thread but dispersed in posts. There is, in-fact, a reliance on percentages and "something special". Valuations, especially increases, have to be within a normalized percentage or it needs to be bumped up several layers for approvals. If you got an Exceeds and 10% bonus last year (as an example) you can't get a Meets (lets assume you were force ranked lower) and with a 15% bonus (Manager attempt at making the lower rating sting less) this year because the %'s would fall outside of allowed without needing to petition Sr Leadership.
I went from a meets to an exceeds from year to year. Total increase in compensation = $400.
regardless of what an individual managers pool is, same with merit, it ultimately gets allocated based on what that groups sr. leadership wants. In some cases you may need to take from some groups to pay others.
Manager has to distribute their pool-can’t go over 100% unless given go ahead in rare circumstances where team delivered earth shattering results .
How they distribute the pool has to follow policies in place and there are checks and balances comparing to last year bonus and performance rating compared to rest in the team. There is some discretion but not much.
comes down to basics you get whatever your manager wants to give you, nothing special and nothing based on any percentage
If roles are eliminated everybody technically should get more bonus compared to last year given same work is delivered and no critical projects are delayed. But in reality this does not happen down the chain but then who gets the bonus benefit from this pool.
Each manager gets X dollars for their bonus pool. The pool is last year's bonus amounts plus or minus depending on funding levels. Then what the manager should do is give more to people higher than meets and less to everyone else.