I work as a consultant in a billable hour environment. We are paid with salary, and then with a bonus that equals a percentage of our billable rate after we hit a certain threshold of our salary. For example, take these hypothetical numbers:
Salary: $100,000
Billable rate: $300/hr
Threshold: 3.5x salary
Pct of rate over threshold: 45%
After this person hits $350,000 in dollars billed (1,167 billable hours), they would accrue a bonus equaling $300 * 45% = $135 per hour billed on top of their salary.
Those are hypothetical numbers, but assume they are in the general vicinity of my situation.
The formula has been set in stone for a while, but parameters may change. There isn't a discretionary component beyond "bad year = fewer hours = lower bonus." There is no reason to believe there would be a situation in which you have a good year and don't get the bonus calculated by the formula. There is no reason to believe this will change.
The way the numbers work, an employee is often better off in good years with a lower salary, given an equal billing rate and billable hours. This was certainly the case for me this year. My total compensation by the formula would be $6k less this year if my salary were $10k higher. Essentially, some of the risk is shifted onto the employee and they reap more of the reward in good years. If the hypothetical person above billed 1500 hours, they would make more in total compensation ($45,000 bonus + $100,000 salary = $145,000) than if they had $110,000 salary ($29,250 bonus + $110,000 salary = $139,250). In fact, I know stories of people above me who have opted to keep their salary low in the past (in comparison to their billable rate) so they could reap the higher bonus and total compensation at the end of the year.
I understand the argument against discretionary bonuses in favor of guaranteed salary. I likely have a higher salary than most others at my level because I was concerned about the risk when I first came here. More salary gives you a higher minimum compensation, higher company retirement contributions (13% of income between 401k match and a not-all-that-discretionary profit sharing contribution).
The years have been good for a while, now. They could get less busy soon. It's possible but unlikely that I don't hit my hour threshold.
I can't straight up pick my salary, but they will consult me before setting it and I can give input, within reason (let's say a $10-15k range). What would you do? Lower or higher salary.