Author Topic: Bonuses  (Read 15137 times)

dafoe1999

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Bonuses
« on: March 06, 2016, 08:49:04 AM »
Without asking how much everybody made in bonuses. What companies offer the largest bonuses? What jobs offer the largest bonuses?

RedmondStash

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Re: Bonuses
« Reply #1 on: March 06, 2016, 09:03:40 AM »
Probably CEOs and other high-paying jobs; you hear all the time about multi-million-dollar golden parachutes. Financial institutions are known for offering high-paying salaries and bonuses. Some high-end law firms too.

Low-paying jobs tend to offer lower bonuses.

Back in the day, Microsoft offered hefty bonuses in terms of both stock options and money. That may no longer be true.

Northwestie

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Re: Bonuses
« Reply #2 on: March 06, 2016, 02:02:40 PM »
The financial industry  - and with no apparent tie to performance.

redcedar

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Re: Bonuses
« Reply #3 on: March 06, 2016, 02:18:06 PM »
Cast a wider net. Bonuses are mostly industry specific but very company specific. Think about why a company wants to pay a bonus. It's first tied to performance - of the company, of the line of business, of the individual. It is also co pensatjon that is not cumulative.

I look at it as what companies make bonuses true bonuses and not salary replacement.
« Last Edit: March 06, 2016, 02:22:24 PM by GrOW »

Chris22

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Re: Bonuses
« Reply #4 on: March 06, 2016, 02:28:37 PM »
At the lower/middle management level, I've found that bonuses tend to be pretty standard across industries for us corporate finance types.  10% for manager, 15% for senior manager, 20% for director, and on up.  Companies vary in how they pay out but the percentage of salary doesn't seem to change a lot.

MidWestLove

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Re: Bonuses
« Reply #5 on: March 06, 2016, 03:19:40 PM »
in financial services - bonuses are treated as part of total comp package and have little tie in to your performance.  you may get few thousand more or less but generally it is within fairly narrow band.

instead of bonuses, what differs greatly is stock and option awards - those are a lot more selective, increase sharply with higher levels and in management and are true bonuses. the goal of such awards is two R's -recognition and in particular retention (as they are 4 year grants). 

Lowest ranks quit after that annual bonuses are paid out, management quits/moves if/when stock/option awards stop :)

Urchina

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Re: Bonuses
« Reply #6 on: March 07, 2016, 11:36:45 PM »
There are functionally no bonuses in public service and education (where I work), unless you count the 1.25% COLA we're getting this year. ;)

I used to work with a cardiologist whose husband was in finance. Every Christmastime they'd have a lengthy phone argument about which new Volvo to buy with his bonus, and whether to go to Capri or Bermuda with the leftovers. This was 20+ years ago and he was getting more in a bonus than I made in two years (I was a research project coordinator at a major teaching hospital).

It was mind-blowing.

Mattzlaff

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Re: Bonuses
« Reply #7 on: March 08, 2016, 01:33:13 AM »
I work for a petrochemical manufacturer. For my position in process operations the bonus varies with pay level starting at 8% ending at 10%, then you have a personal part that can effect that as well IE safety performance and training compliance, then there is the companies portion that can effect it too. if the company makes sales projections you can get up to 2x the 8 or 10, poor performance can be less than 1x.

Bloodbuzz

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Re: Bonuses
« Reply #8 on: March 09, 2016, 01:16:46 PM »
It was mind-blowing.

I work for a major engineering / environmental consultancy and a couple of years ago before I found MMM etc my colleague said his girlfriend (who works for an accounting firm) was getting a £6,000 bonus at Christmas - this was roughly the value of my entire life savings at the time - i felt pretty pissed off about it actually.

Northwestie

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Re: Bonuses
« Reply #9 on: March 09, 2016, 01:20:44 PM »
There are functionally no bonuses in public service and education (where I work), unless you count the 1.25% COLA we're getting this year. ;)


While I only had a short tenure with the federal government - they did shell out performance (I use the term loosely) bonuses each year.   It certainly didn't seem to be tied to merit, however.

acroy

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Re: Bonuses
« Reply #10 on: March 09, 2016, 01:23:45 PM »
Good sized food industry company, manufacturing packaging and stainless equipment...
Salary tends to run a bit below industry average, but bonus is 10% target for the peons, 18% for mid management, and more (25%? not sure) for higher execs.
The 10% is a target based on individual and company performance. It can vary from 0-18%. In reality it is generally 8-12%.
I think it is a very smart system.

10dollarsatatime

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Re: Bonuses
« Reply #11 on: March 09, 2016, 05:41:59 PM »
I work for a city government.  Up until 2009 or so, they gave bonuses... but the previous mayor/council weren't any good at actually balancing the budget.  So new mayor comes in, realizes what's up, and shuts down bonuses, in addition to laying off a bunch of people.  City is doing fine now, and there's extra money about.  Instead of going back to bonuses as a percentage, they've decided that you can 'earn' bonuses by doing extra projects.  This, of course, means that I will never get a bonus because I already work, on average, more than 40 hours a week.  So only those people with less responsibility can earn bonuses.  And this makes me crazy.

use2betrix

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Re: Bonuses
« Reply #12 on: March 09, 2016, 06:03:42 PM »
It was mind-blowing.

I work for a major engineering / environmental consultancy and a couple of years ago before I found MMM etc my colleague said his girlfriend (who works for an accounting firm) was getting a £6,000 bonus at Christmas - this was roughly the value of my entire life savings at the time - i felt pretty pissed off about it actually.

Why? Because your savings was small or that she happened to pick a different career path than you?

I really see no reason to be mad about someone doing better in a completely different career path lol.

Bloodbuzz

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Re: Bonuses
« Reply #13 on: March 10, 2016, 12:41:07 AM »
It was mind-blowing.

I work for a major engineering / environmental consultancy and a couple of years ago before I found MMM etc my colleague said his girlfriend (who works for an accounting firm) was getting a £6,000 bonus at Christmas - this was roughly the value of my entire life savings at the time - i felt pretty pissed off about it actually.

Why? Because your savings was small or that she happened to pick a different career path than you?

I really see no reason to be mad about someone doing better in a completely different career path lol.

Yeah this was pre-MMM and I was quite naive, but now I know better and am happy for people like that e.g. they probably got a first from a top university and worked like crazy to get that job etc - just at the time it blew my mind

Last Night

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Re: Bonuses
« Reply #14 on: March 10, 2016, 03:54:44 PM »
Work in Finance (director level) bonus is 30% of gross.

ditheca

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Re: Bonuses
« Reply #15 on: March 11, 2016, 10:46:05 AM »
I work in aviation consulting.  Our bonuses are 2-4% of gross, and are only paid on years when the company does well.  Recently it's been even worse:

We were told we're receive a bonuses in 2011,2012, and 2014.  They eventually paid the delayed bonuses in 2015... but the three combined were only equal to 2% of my gross.  After paying taxes on the bonus, it wasn't even four figures.

It felt pretty insulting, really.  Upper management talked it up like finally getting the bonus was a big deal, and were going around asking what people were going to spend it on.  Really?

Fortunately I agreed to do the job based on the salary, without any regard to what bonuses may or may not be paid.

AZDude

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Re: Bonuses
« Reply #16 on: March 11, 2016, 10:59:57 AM »
I work in IT and bonus money has been all over the map. In general, large, successful corporations offered the most and mid-size local companies and local government had the least(ie: $0).


zephyr911

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Re: Bonuses
« Reply #17 on: March 11, 2016, 11:01:42 AM »
As a fed, I usually get about 1% of annual. Woooo, party....

MrFrugalChicago

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Re: Bonuses
« Reply #18 on: March 11, 2016, 11:33:03 AM »
In programming in finance is where I personally saw the biggest bonus.

Normal level programmer bonus target was 15% with a max of 30%
Low level manager bonus target was 30% with a max of 60%
Higher level managers was higher, think it started at 50%.. assume C level was much higher.


I was just a normal programmer, so I think my max bonus was 28%.

2Birds1Stone

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Re: Bonuses
« Reply #19 on: March 11, 2016, 11:43:45 AM »
Executive positions offer the highest bonuses.

My VP of sales (4 layers above me at megacorp) took on his position in 2014. He gets $700k base salary, $700k annual cash bonus, $2,600,000 long term equity (over course of 3 years).

He also has a severance clause that if he leaves before the 3 year vestment period for the equity he will receive 150% of base salary in severance paid out no longer than 60 days after the date of his termination.

Yaeger

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Re: Bonuses
« Reply #20 on: March 11, 2016, 01:07:33 PM »
The military gives some pretty nice bonuses, usually to skilled positions in an effort to boost retention and reduce training costs. My experience is only in the Navy though.

For instance, nuclear-trained officers in the Navy get approximately $35,000 per year, on top of other bonuses, once they reach a certain milestone in their career. Others, get a $105k early career bonus to sign up for an additional 3 years of service past their initial obligation.

Nuclear trained enlisted personnel get upwards of $100,000 to sign up for an additional 2/4 years depending on their specialty.

Gone Fishing

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Re: Bonuses
« Reply #21 on: March 11, 2016, 01:13:44 PM »
Don't get hung up on bonuses, focus on total compensation.  I'd rather get a nice salary than have to wait on a big chunk of my compensation that hits all at once.

TheOldestYoungMan

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Re: Bonuses
« Reply #22 on: March 11, 2016, 01:59:26 PM »
Aye, in engineering it seems like you choose between higher salary and a smaller bonus or smaller salary and a higher bonus.  It always seemed to me like I got screwed on the taxes with the bonus (even though it works out at the end of the year, it sort of sucks to not be able to put into 401k or whatever).

Bonus as a part of compensation only really makes sense to me from a partnership type organization or a startup type organization.  For a large, established company to offer bonuses just seems like they don't have their shit together well enough to properly allocate capital year round.  If you don't know how well you did until you're done paying taxes at the end of the year, then you aren't running your business very well.

onlykelsey

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Re: Bonuses
« Reply #23 on: March 11, 2016, 02:07:09 PM »
Quote
Aye, in engineering it seems like you choose between higher salary and a smaller bonus or smaller salary and a higher bonus.  It always seemed to me like I got screwed on the taxes with the bonus (even though it works out at the end of the year, it sort of sucks to not be able to put into 401k or whatever).

Bonus as a part of compensation only really makes sense to me from a partnership type organization or a startup type organization.  For a large, established company to offer bonuses just seems like they don't have their shit together well enough to properly allocate capital year round.  If you don't know how well you did until you're done paying taxes at the end of the year, then you aren't running your business very well.

In my industry (NYC BigLaw), it's a conscious retention choice, not a matter of poor fiscal planning.  I am relatively neutral at this point on whether my money comes in salary or bonus, but I think bonus incentivizes poor choices.  I just put my (small, pro rata) bonus last year towards my HELOC but I dont' think that's what most people did with the money.

2lazy2retire

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Re: Bonuses
« Reply #24 on: March 11, 2016, 02:35:13 PM »
Without asking how much everybody made in bonuses. What companies offer the largest bonuses? What jobs offer the largest bonuses?


investment banking/funds - closer to the money can be better - ie smaller hedge funds etc.

couponvan

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Re: Bonuses
« Reply #25 on: March 11, 2016, 06:30:21 PM »
Insurance - When I worked as a Manager the bonus was approx. 20% of comp.  DH's this year was almost 50%, but they had an awesome year last year....Me in accounting, meh - 5% (of course I am PT and have a flexible schedule....and everyone knows my DH is higher up).  DH's bonus is more than my salary....

Every year he gets it I think about SAH and AMT....But 1 more PT year for me = 1 less year to FIRE for both of us.

Taran Wanderer

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Re: Bonuses
« Reply #26 on: March 11, 2016, 07:26:29 PM »
Manager:  10%
Director:  15-20%
VP:  25-30%

Adjusted by a factor of 0.5 to 1.5 based on company financial performance vs. target. Below a minimum company performance threshold, no bonus.

It's not a bad system, but the bonus criteria are relatively narrow elements of overall performance, and therefore could be gamed by the unscrupulous.  The company is good sized but still small enough that this would usually be fairly obvious.

Tabaxus

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Re: Bonuses
« Reply #27 on: March 12, 2016, 09:25:09 AM »
Big firm bonuses for the large new york+other offices firms are largely lockstop, though there is some variance among firms re how they handle people with higher/lower billable hours or reviews.  The only reason they really feel like "bonuses" at all is because you have to still be at the firm on the payout date to get the bonus, so it's a serious retention mechanism, and a lot of firms  cut the bonus year mid-year so that you're always leaving something on the table (e.g., bonus year measured from October 2014->September 2015 for the bonuses paid in December 2015, so even if you leave the firm the day after the bonus payout, you're leaving your October->December hours behind).

Standard scale, based on 2015 bonuses for most biglaw firms, is:

Year    -    Base Pay   -   Bonus

1st - $160k - $15k (pro-rated for the year you start)
2nd - $170k - $25k
3rd: $185k -  $50k
4th:  $210k - $65k
5th:  $230k -  $80k
6th:  $250k -  $90k
7th:  $265k - $100k
8th:  $280k -  $100k
9th:  $290k  - varies

Once you're past year 9 there's a ton of variance, because year 10 is the "up into the share partnership or out" year at a lot of firms.

onlykelsey

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Re: Bonuses
« Reply #28 on: March 13, 2016, 09:07:21 AM »
Tabaxus- I made a move from a V40 to a V15 or 20 firm mid last year, and my new firm graciously made me whole in bonus (which is way more than I would have gotten from my old firm, who was always playing games with comp).  At least in my class year and the year above (2010 and 2011) I think that's market in NYC now due to the demand for our years (since we weren't hired in the recession).

Tabaxus

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Re: Bonuses
« Reply #29 on: March 13, 2016, 09:21:19 AM »
Tabaxus- I made a move from a V40 to a V15 or 20 firm mid last year, and my new firm graciously made me whole in bonus (which is way more than I would have gotten from my old firm, who was always playing games with comp).  At least in my class year and the year above (2010 and 2011) I think that's market in NYC now due to the demand for our years (since we weren't hired in the recession).

Interesting, I hadn't heard that. 

Indexer

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Re: Bonuses
« Reply #30 on: March 13, 2016, 09:27:55 AM »
The financial industry  - and with no apparent tie to performance.

Financial industry, and what they are measured on in terms of performance is likely different than investment performance.

Hedge fund managers get paid based on investment performance to a degree, but AUM matters more.
Just about everyone else is going to be measured on some other form of performance. Sales performance, AUM, direct commissions, etc.

ETBen

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Re: Bonuses
« Reply #31 on: March 13, 2016, 03:08:00 PM »
Insurance industry. Director level with a volume side (not quite sales). 20%. Not sure across the company. My assistant gets 8%. It's all then adjusted for what % we meet company goals each year.

GetItRight

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Re: Bonuses
« Reply #32 on: March 13, 2016, 08:18:35 PM »
1 week pay for Christmas and 1-2 weeks pay typically as a bonus around review time, used to be 10%-20% for managers depending on performance (or maybe perception of performance), though word is 10% is at the high end these days. This past year I got a bonus 5% of base pay and got over 20% of base in OT. Uncommon, though they changed me to salary so I'll see this year if that works out to be a pay raise or cut.

Personally I'd focus on max guaranteed total compensation. Treat a bonus as a bonus to accelerate FI. If you have a contract with a "bonus" that is guaranteed minimum it's just part of your compensation, not a bonus.

meyling

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Re: Bonuses
« Reply #33 on: March 13, 2016, 08:39:41 PM »
Aye, in engineering it seems like you choose between higher salary and a smaller bonus or smaller salary and a higher bonus.  It always seemed to me like I got screwed on the taxes with the bonus (even though it works out at the end of the year, it sort of sucks to not be able to put into 401k or whatever).

Bonus as a part of compensation only really makes sense to me from a partnership type organization or a startup type organization.  For a large, established company to offer bonuses just seems like they don't have their shit together well enough to properly allocate capital year round.  If you don't know how well you did until you're done paying taxes at the end of the year, then you aren't running your business very well.
You cant put your bonus in your 401k? I mean I understand if youve already maxed out, but I know I've always been able to put money from my bonus into my 401k

TheOldestYoungMan

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Re: Bonuses
« Reply #34 on: March 17, 2016, 11:50:22 AM »
Aye, in engineering it seems like you choose between higher salary and a smaller bonus or smaller salary and a higher bonus.  It always seemed to me like I got screwed on the taxes with the bonus (even though it works out at the end of the year, it sort of sucks to not be able to put into 401k or whatever).

Bonus as a part of compensation only really makes sense to me from a partnership type organization or a startup type organization.  For a large, established company to offer bonuses just seems like they don't have their shit together well enough to properly allocate capital year round.  If you don't know how well you did until you're done paying taxes at the end of the year, then you aren't running your business very well.
You cant put your bonus in your 401k? I mean I understand if youve already maxed out, but I know I've always been able to put money from my bonus into my 401k
Was never an option for me, contributions to the 401k had to be selected prior to actually getting paid, and bonuses were always just a check that showed up on the desk.  I could go in after and increase my contribution on the paycheck I'd be getting in about 6 weeks, but that would usually be the next year anyways.  It seemed like even if the regular withholding on my pay was around the 10% mark, the withholding on the bonus would be 45%.  It'd mean I get a bigger refund or owe less when I do my taxes, but more than make me want to work hard it just left me feeling disgusted about withholding.

golden1

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Re: Bonuses
« Reply #35 on: March 17, 2016, 12:33:14 PM »
I'm in a smaller tech company.  We get a profit sharing bonus of 3% of our total salary in a good year.  Last year wasn't a good year so we got 1.5% - better than nothing I guess.  We also get a flat $500 Christmas bonus.

runningthroughFIRE

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Re: Bonuses
« Reply #36 on: March 17, 2016, 01:52:16 PM »
Corporate accountant here.  Bonus is up to 10% of base and dependent on overall company goals, one of which is profit.  I'm at the bottom part of the totem pole, but the mid-range accountants get an increase to 20%, and the higher-ups get 30%.  Last year was pretty bad, so we only paid out at maybe 20% (i.e. I got a 2% bonus).

Bonuses are direct deposit alongside normal pay, but none of it gets put into your 401(k) here.

NorCal

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Re: Bonuses
« Reply #37 on: March 18, 2016, 08:52:38 PM »
My wife has made very good bonuses at a BigLaw firm.  Her last bonus was about the size of my entire annual earnings.  Of course, she's been doing it a lot of years and based on the hours she puts in, she certainly earns it.

I previously worked in financial services.  The bonus was a standard 10% of salary unless you really screwed up.  You could also get a small stock grant (with terrible vesting) if you did well.

I also previously worked at a tech startup.  They promised a 20% bonus in all offer letters, but they never actually managed to pay a bonus. 

I just started interviewing with Amazon, and they have an interesting structure.  They give you a massive up-front stock bonus (something like 50% of salary), but you only vest 20% of it over the first two years.  The remainder vests over years 3 and 4.

calimom

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Re: Bonuses
« Reply #38 on: March 18, 2016, 10:14:18 PM »
OP: if you are looking for a job with an enormous yearly bonus, you should look into being a hedge fund manager for a top drawer firm.

chesebert

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Re: Bonuses
« Reply #39 on: March 18, 2016, 11:38:29 PM »
Transaction bonuses can often go into millions for even small to medium companies. That's the money you pay management (not the owners) when you want to buyout the company. Yes, life is truly not fair and you can't deny the luck factor. Of course, some workers will get the short end of the stick and lose their job after buyout with nothing but few months of severance.

Taran Wanderer

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Re: Bonuses
« Reply #40 on: March 20, 2016, 12:54:01 AM »
I just started interviewing with Amazon, and they have an interesting structure.  They give you a massive up-front stock bonus (something like 50% of salary), but you only vest 20% of it over the first two years.  The remainder vests over years 3 and 4.

Be sure to really research this before you accept a position. Recent articles paint a pretty ugly picture of work-life balance at Amaxon, and these stories have been confirmed to me directly by a former employee.

JoJo

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Re: Bonuses
« Reply #41 on: March 21, 2016, 07:01:02 PM »
Bonus will be paid this Friday.  After taxes, enough to fund over a year of ER!